The cash price at your local elevator is $3.60/bu for corn. The relevant (nearby) futures contract for corn is the December contract and it is valued today at $3.50/bu. The "basis" for this location (market) is:
a. $0.50/bu
b. -$0.50/bu
c. $0.10/bu
d. -$0.10/bu
c. $0.10/bu
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Assuming all else equal, an increase in the real interest rate will cause:
A) a leftward shift of the credit supply curve. B) a rightward shift of the credit supply curve. C) a downward movement along the credit supply curve. D) an upward movement along the credit supply curve.
For the past year, Teddy has had a part-time job at which he is willing to work 10 hours each week. During Teddy's annual review, his boss grants him an 8 percent increase in his wage
As a result of the wage increase, Teddy is now willing to work 15 hours each week. Teddy's opportunity cost of ________ has risen and because for Teddy the substitution effect of the wage hike is ________ than the income effect. A) work; greater B) work; less C) leisure; greater D) leisure; less
Explain why an increase in expected inflation will result in an increase in nominal interest rates, holding other factors constant.
What will be an ideal response?
If external costs are included and added to a firm's private costs, then
A. the supply curve will shift to the left. B. the demand curve will shift to the left. C. the demand curve will shift to the right. D. the supply curve will shift to the right.