13. A farmer currently holds 7,000 bushels of corn. The local mill is offering a price of $3-39 per bushel. Currently, a three-month futures contract is trading at $3.45. The farmer is considering selling to the grain elevator now or holding the corn in inventory and selling a futures contract now. The farmer can store and insure the corn at a cost of 24 cents per bushel per annum to be paid monthly in advance at the beginning of each month. Interest rates are 8%, continuously compounded. (10 points) (a) Calculate total carrying cost per bushel of corn. (b) What is the theoretical price for a three-month futures contract? What is the best strategy for the farmer to minimize risk and maximize gain? Explain why (d) What is the basis today