Multiple Choice
September corn futures are currently trading at $3.80 a bushel while the spot price of corn is $3.65 a bushel,so the "basis" (the futures price minus the spot price) is $0.15 a bushel.If you expect the basis to weaken (i.e. ,to fall) significantly in the next few days,you can speculate on your view by
A) Going long the September futures contract.
B) Going long spot corn.
C) Going long spot corn and short September futures.
D) Going long September futures and short spot corn.
Correct Answer:

Verified
Correct Answer:
Verified
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