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The following information is available to you regarding cash and futures prices: Year Cash price on Cash price on May futures contract Price Sep futures contract Price Dec futures contract Price Dec futures contract Price Mar futures. contract Price May 10 Oct 31 on May 10 on Sep10 on May 10 on Oct 31 on Pct 31 2011 $5.07 $4.61 $5.35 $5.89 $6.10 $4.91 $5.33 2012 $3.12 $3.15 $3.54 $3.82 $3.75 $3.09 $3.24 2013 $4.18 $4.39 $3.70 $3.77 $4.11 $4.35 $4.87 2014 $6.83 $6.22 $7.04 $6.69 $7.18 $7.64 $7.72 2015 $7.42 $7.77 $6.46 $6.59 $6.40 $7.93 $10.73 2016 $4.75 $4.32 $7.10 $7.46 $8.17 $4.71 $4.76 2017 $3.59 $3.88 $4.66 $4.71 $5.31 $4.19 $4.35 2018 $3.33 $3.22 $3.96 $4.24 $4.36 $3.54 $4.54 2019 $3.40 $3.99 $3.69 $3.69 $4.10 $4.15 $4.93 2020 $3.38 $3.80 $3.87 $3.87 $4.37 $3.77 $4.48 1. Calculate the basis of each year for a corn producer who plants com on May 10 and harvests/sells com each Oct 31. Then calculate the 10-year simple average basis. (the only answer required here is the 10-year average)

The following information is available to you regarding cash and futures prices: Year Cash price on Cash price on May futures contract Price Sep futures contract Price Dec futures contract Price Dec futures contract Price Mar futures. contract Price May 10 Oct 31 on May 10 on Sep10 on May 10 on Oct 31 on Pct 31 2011 $5.07 $4.61 $5.35 $5.89 $6.10 $4.91 $5.33 2012 $3.12 $3.15 $3.54 $3.82 $3.75 $3.09 $3.24 2013 $4.18 $4.39 $3.70 $3.77 $4.11 $4.35 $4.87 2014 $6.83 $6.22 $7.04 $6.69 $7.18 $7.64 $7.72 2015 $7.42 $7.77 $6.46 $6.59 $6.40 $7.93 $10.73 2016 $4.75 $4.32 $7.10 $7.46 $8.17 $4.71 $4.76 2017 $3.59 $3.88 $4.66 $4.71 $5.31 $4.19 $4.35 2018 $3.33 $3.22 $3.96 $4.24 $4.36 $3.54 $4.54 2019 $3.40 $3.99 $3.69 $3.69 $4.10 $4.15 $4.93 2020 $3.38 $3.80 $3.87 $3.87 $4.37 $3.77 $4.48 1. Calculate the basis of each year for a corn producer who plants com on May 10 and harvests/sells com each Oct 31. Then calculate the 10-year simple average basis. (the only answer required here is the 10-year average)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kinder The following information is available to you regarding cash and futures prices: May futures contract Price contract Price contract Price contract Price contract Price on May 10 Sep futures Dec futures Dec futures Mar futures Cash price on Cash price on May 10 Year Oct 31 on Sep10 on May 10 on Oct 31 on Pct 31 2011 $5.07 $4.61 $5.35 $5.89 $6.10 $4.91 $5.33 2012 $3,12 $3,15 $3.54 $3.82 $3.75 $3.09 $3.24 2013 $4.18 $4.39 $3.70 $3.77 $4.11 $4.35 $4.87 2014 $6.83 $6.22 $7.04 $6.69 $7.18 $7.64 $7.72 2015 $7.42 $7.77 $6.46 $6.59 $6.40 $7.93 $10.73 2016 $4.75 $4,32 $7.10 $7.46 $8.17 $4.71 $4.76 2017 $3.59 $3.88 $4.66 $4.71 $5.31 $4.19 $4.35 2018 $3.33 $3.22 $3.96 $4.54 $4.24 $4.36 $3.54 2019 $3.40 $3.99 $3.69 $3.69 $4.10 $4.15 $4.93 2020 $3.38 $3.80 $3.87 $3.87 $4.37 $3.77 $4.48 1. Calculate the basis of each year for a com producer who plants com on May 10 and harvests/sells com cach Oct 31. Then calculate the 10-ycar simple average basis. (the only answer required here is the 10-year average)
Transcribed Image Text:Kinder The following information is available to you regarding cash and futures prices: May futures contract Price contract Price contract Price contract Price contract Price on May 10 Sep futures Dec futures Dec futures Mar futures Cash price on Cash price on May 10 Year Oct 31 on Sep10 on May 10 on Oct 31 on Pct 31 2011 $5.07 $4.61 $5.35 $5.89 $6.10 $4.91 $5.33 2012 $3,12 $3,15 $3.54 $3.82 $3.75 $3.09 $3.24 2013 $4.18 $4.39 $3.70 $3.77 $4.11 $4.35 $4.87 2014 $6.83 $6.22 $7.04 $6.69 $7.18 $7.64 $7.72 2015 $7.42 $7.77 $6.46 $6.59 $6.40 $7.93 $10.73 2016 $4.75 $4,32 $7.10 $7.46 $8.17 $4.71 $4.76 2017 $3.59 $3.88 $4.66 $4.71 $5.31 $4.19 $4.35 2018 $3.33 $3.22 $3.96 $4.54 $4.24 $4.36 $3.54 2019 $3.40 $3.99 $3.69 $3.69 $4.10 $4.15 $4.93 2020 $3.38 $3.80 $3.87 $3.87 $4.37 $3.77 $4.48 1. Calculate the basis of each year for a com producer who plants com on May 10 and harvests/sells com cach Oct 31. Then calculate the 10-ycar simple average basis. (the only answer required here is the 10-year average)
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