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)
Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter18: Derivatives And Risk Management
Section: Chapter Questions
Problem 4P: Intermediate Problems 4-5 BLACK-SCHOLES MODEL Assume that you have been given the following...
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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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