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A U.S. company expects to receive 5 million euro at the end of July. Euro...

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A U.S. company expects to receive 5 million euro at the end of July. Euro futures contracts on the CME Group have delivery months of March, June, September, and December. One contract is for the delivery of 125,000 Euro. The company therefore shorts 40 September euro futures contracts on March 1. When the euros are received at the end of July, the company closes out its position. Suppose that the futures price on March 1 is $1.08/ and that the spot and futures prices when the contract is closed out are $1.02 and $1.025, respectively. What is the basis at the time of closing out the futures position? O $0.055 $0.005 $0.055 -$0.005

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