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1 Futures Price Suppose you observe the spot price of canola to be $7.45 per bushel while the futures price for delivery one month from

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1 Futures Price Suppose you observe the spot price of canola to be $7.45 per bushel while the futures price for delivery one month from today is $7.60. Assuming a $0.10 per bushel carrying cost, what would you do to hedge your price uncertainty? Please include details in your answer. - Can you design a trading strategy that would generate some arbitrage profits for you in this canola market? 1 Futures Price Suppose you observe the spot price of canola to be $7.45 per bushel while the futures price for delivery one month from today is $7.60. Assuming a $0.10 per bushel carrying cost, what would you do to hedge your price uncertainty? Please include details in your answer. - Can you design a trading strategy that would generate some arbitrage profits for you in this canola market

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