Question: Calculate the margin on this short-the-basis transaction: a Make a sale of soybeans in June for immediate delivery at +50 JUL. Deliver soybeans during May
Calculate the margin on this short-the-basis transaction: a Make a sale of soybeans in June for immediate delivery at +50 JUL. Deliver soybeans during May from your inventory that farmers have yet to price but which you have title to under the terms of a Deferred Price Contract Pay 10 freight for delivery. Receive payment for the soybeans. Spread JULIAUG at 10 inversion. - Price soybeans farmers have on Deferred Price Contract at +15 AUG during July and pay them for the beans. Earn 5 interest (total) on the money you held for the two months. 23 Calculate the margin on this short-the-basis transaction: a Make a sale of soybeans in June for immediate delivery at +50 JUL. Deliver soybeans during May from your inventory that farmers have yet to price but which you have title to under the terms of a Deferred Price Contract Pay 10 freight for delivery. Receive payment for the soybeans. Spread JULIAUG at 10 inversion. - Price soybeans farmers have on Deferred Price Contract at +15 AUG during July and pay them for the beans. Earn 5 interest (total) on the money you held for the two months. 23
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