Consider the following Futures Product Groups, where I have eliminated some contracts to focus on major contracts offered via the CME group. Note that the CME Group now owns the Chicago Board of Trade (CBOT), the Commodity Exchange (COMEX) and the NY Mercantile Exchange (NYMEX). I have included the links for ease of use. I have replaced the ICE quotes in Softs with NYMEX cash settled futures so you can use advanced charts if you need it. Unfortunately, for Coffee, Orange Juice and White Sugar, you are stuck with the crappy ICE charts.

Currencies

Name	Symbol	Exchange	Size	Months	Tick
Australian Dollar	6A	CME	100K AUD	Monthly	0.0001 / $10.00
Australian Dollar/Japanese Yen	AJY	CME	200,000 AUD	H,M,U,Z	0.01 / 2,000
Brazilian Real	6L	CME	100K BRL	Monthly	0.00005 / $5.00
British Pound	6B	CME	62.5K GBP	Monthly	0.0001 / $6.25
British Pound/Japanese Yen	PJY	CME	125K GBP	H,M,U,Z	0.01 / 1250
Canadian Dollar	6C	CME	100K CAD	Monthly	0.0001 / $10.00
Euro FX	6E	CME	125K EUR	Monthly	0.00005 / $6.25
Euro/British Pound	RP	CME	125K EUR	H,M,U,Z	0.00005 / 6.25
Euro/Japanese Yen	RY	CME	125K EUR	H,M,U,Z	0.0001 / 1250
Euro/Swiss Franc	RF	CME	125K EUR	H,M,U,Z	0.0001 / 12.5 CHF
Indian Rupee	SIR	CME	5M INR	Monthly	0.01 / $5.00
Japanese Yen	6J	CME	12.5M JPY	Monthly	0.0000005 / $6.25
Mexican Peso	6M	CME	500K MXN	Monthly	0.00001 / $5.00
Swiss Franc	6S	CME	125K CHF	H,M,U,Z	0.0001 / $12.50

Note that a metric ton (tonnes) is approximately 1.1. US tons.

Assignment Task

Select one contract from Product Group and discuss the following

1. The institutional features of each contract selected.
2. The initial and maintenance margin for each contract select.
3. How these institutional features impact the storage costs and potential short costs in cost of carry arbitrage for each contract you have selected.

4. Leaving Storage Costs and Short Costs as variables (as opposed to numbers) in your equations, specify the upper and lower arbitrage