Question: Part III Problems (answers in the attached answer sheet) 1 Hedging (16 points) Fill the relevant blanks with question marks. in $/bushel, S/ton) 1). Type

 Part III Problems (answers in the attached answer sheet) 1 Hedging

Part III Problems (answers in the attached answer sheet) 1 Hedging (16 points) Fill the relevant blanks with question marks. in $/bushel, S/ton) 1). Type of Hedge? BASIS? Cash April 1 Buys 100 tons of September soybean meal at $ 170 per ton. Futures April 1 Sells 100 tons of September soybean meal Futures at $ 200 per ton. ? July 1 July 1 Sells 100 tons of soybean meal at Buys 100 tons of September Futures $ 200 per ton soybean meal at $ ? per ton. Gain Loss ? ? Gain Loss $20 NET HEDGE SELLING PRICE

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