$10$ points

October $15$ th : A feedlot plans to buy feeder cattle in mid$-$December; currently, January feeder cattle futures are trading at $$\frac{245\mathrm{.}300}{c}wt.$ The expected basis is $$\frac{2\mathrm{.}50}{?}$ cwt under.

Does the feedlot have a long or short cash position?

Does the feedlot have a long or short futures position?

To hedge: The feedlot will January feeder cattle futures at $$\frac{245\mathrm{.}300}{c}wt.$

December ${17}^{th}$ :

The feedlot musi calves locally in the cash market at $$\frac{246\mathrm{.}025}{?}$ cwt$.$

To offset their future position, they must

January futures at $$\frac{247\mathrm{.}775}{c}wt.$

What is

f$.$w$.$pe realized price for the feedlot?