Question: If you believe the futures price will decrease and the basis will widen, the table recommends that you sell your commodity with one or more
If you believe the futures price will decrease and the basis will widen, the table recommends that you sell your commodity with one or more of the following strategies.
Forward contract
Sell in the cash market now
Explain, for each strategy above, why they would be recommended if the hedger believes the futures price will decrease and the basis will widen. The questions below refer to the following table.
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