If your forecast of the local cash price for next July is $88.80/cwt, and predict that the basis with respect to the August futures will be $7.30/cwt in July. Then, the current August futures price is
A. $96.10/cwt
B. $81.50/cwt
C. $12.16/cwt
D. not enough information provided
Ans: B. $81.50/cwt
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