April 2020 contract May 2020 contract Today expiry: 17.00 16.760 1-month later expired expiry: 13.500 2-months later expired expired Source: CME group as of 28-Apr Jun 2020 contract 15.750 14.010 expiry: 11.800 Jul 2020 contract 14.750 14.050 12.560 Sep 2020 contract 11.960 14.100 16.000 5. Suppose you wanted to short the rice commodity between now and June 2020. Is it more profitable to do it by a) executing the May contract and then rolling into the June contract, or b) executing the June contract only from today? Demostrate which is more profitable and by how much? It is ok to express returns in percentages. (20pt) 6. For the previous question, why is one strategy more profitable than the other? What is the source of the outperformance? (5pt) April 2020 contract May 2020 contract Today expiry: 17.00 16.760 1-month later expired expiry: 13.500 2-months later expired expired Source: CME group as of 28-Apr Jun 2020 contract 15.750 14.010 expiry: 11.800 Jul 2020 contract 14.750 14.050 12.560 Sep 2020 contract 11.960 14.100 16.000 5. Suppose you wanted to short the rice commodity between now and June 2020. Is it more profitable to do it by a) executing the May contract and then rolling into the June contract, or b) executing the June contract only from today? Demostrate which is more profitable and by how much? It is ok to express returns in percentages. (20pt) 6. For the previous question, why is one strategy more profitable than the other? What is the source of the outperformance? (5pt)