Question $5(5\mathrm{.}5$ points$)$: Hedge

May $20{?}^{th}$ Producer plans to sell corn in early November. Currently the December corn futures are trading at $$4\mathrm{.}33.$ The expected basis is $-$$$0\mathrm{.}36.$

Does the producer have a long or short cash position?

To hedge: The producer will $($buy$/$sell$)$ Dec corn futures at $$\frac{4\mathrm{.}33}{b}u.$

What is the expected price?

Nov. ${10}^{th}$ :

The producer must $($buy$/$sell$)$ corn locally in the cash market at $$\frac{4\mathrm{.}18}{b}u.$

To offset their future position, they must $($buy$/$sell$)$ Dec futures at $$\frac{4\mathrm{.}67}{b}u.$

What is the actual basis?

What is the realized price for the producer?

Method $1$: