MCQOPTIONS
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| 1. |
A soybean processor at harvest time (November) is concerned about basis risk for beans he will need to process in late April to Early May. If his only concern is basis risk, what exactly is the processor concerned about: |
| A. | Nov futures - Nov cash (in November) vs. May futures - May cash (in May) |
| B. | May futures - Nov cash (in November) vs. May futures - May cash (in May) |
| C. | Nov futures - Nov cash (in November) vs. Nov futures - May cash (in May) |
| D. | Only the current November futures - November cash |
| Answer» C. Nov futures - Nov cash (in November) vs. Nov futures - May cash (in May) | |