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13. Suppose it is several minutes before expiration of the May corn futures contract. The spot price of corn in Chicago is $6.00/bu. Assume there
13. Suppose it is several minutes before expiration of the May corn futures contract. The spot price of corn in Chicago is $6.00/bu. Assume there is lots of trading activity and no trader is worried about having a trading partner and that transportation and storage costs are 0. What if the May corn futures price (several minutes before expiration) is $5.00? a. a smart trader will buy in the spot market and sell in the futures market b. a smart trader will sell in the spot market and buy in the futures market c. a smart trader will sell in the spot market and sell in the futures market d. a smart trader will sell in futures market and buy in the spot market
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