Scenarios for Selected Market Alternatives source: Wisner

Expected Change

UP

Strengthen

Weaken

Down

Basis

Basis

Futures

Futures

1. Store and wait

2. Delayed price contract

3. Minimum price contract

1. Basis contract

2. Sell cash and buy futures or buy call option

3. Minimum price contract

1. Cash sales now

2. Forward Contract

1. Hedge

2. Hedge-to-Arrive

3. Buy put option

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