Assume an unnamed asset has a spot price of $1,000. The asset generates a 3.4% income return, costs 1.5% to finance, and 2% to transport, warehouse and insure.

What is most likely to be true about this asset?

1. The futures price is equal to 999

2. The futures price is equal to $1,005

3. The market is in backwardation

4. The market is in contango