Please help me explain the hedging and fill this out. I wasn't able to make it to class and the notes are lacking, would really appreciate the help. Thank you in advance, will upvote!!

Plot a break-even basis (B.E.) and the monthly basis listed below and answer questions: Today's basis: Expected normal basis on July 1: Harvest October 1: Storage cost: $-0.50 $-0.15 Lift hedge by July 1 $0.02 per month Breakeven Basis Table: 16 pts. Breakeven Basis Breakeven Basis Diff. Diff. Month Oct 1 Nov 1 Dec 1 Jan 1 Feb 1 Actual Basis -0.500 -0.450 -0.400 -0.370 -0.300 Month Mar 1 Apr 1 May 1 Jun 1 Jul 1 Actual Basis -0.220 -0.220 -0.160 -0.170 -0.100 Breakeven Figure: draw the breakeven basis line and the actual basis (16 pts.) BASIS 0.00 -0.10 -0.20 -0.30 -0.40 -0.50 -0.60 -0.70 -0.80 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 1. Would you consider hedging October 1 and why? (3 pts.) 2. What net above harvest cash did you expect to receive on Oct 12 (3 pts.) Show work 3. List all the months you would consider lifting your hedge early? (3 pts.) Plot a break-even basis (B.E.) and the monthly basis listed below and answer questions: Today's basis: Expected normal basis on July 1: Harvest October 1: Storage cost: $-0.50 $-0.15 Lift hedge by July 1 $0.02 per month Breakeven Basis Table: 16 pts. Breakeven Basis Breakeven Basis Diff. Diff. Month Oct 1 Nov 1 Dec 1 Jan 1 Feb 1 Actual Basis -0.500 -0.450 -0.400 -0.370 -0.300 Month Mar 1 Apr 1 May 1 Jun 1 Jul 1 Actual Basis -0.220 -0.220 -0.160 -0.170 -0.100 Breakeven Figure: draw the breakeven basis line and the actual basis (16 pts.) BASIS 0.00 -0.10 -0.20 -0.30 -0.40 -0.50 -0.60 -0.70 -0.80 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 1. Would you consider hedging October 1 and why? (3 pts.) 2. What net above harvest cash did you expect to receive on Oct 12 (3 pts.) Show work 3. List all the months you would consider lifting your hedge early? (3 pts.)