7. In March, the spot price of soybeans is $9.00 per bushel and the June Soybeans futures price is $9.60 per bushel. Each Soybeans futures contract represents 5,000 bushels. A soybeans arbitrageur is calculating the theoretical futures price and determining the best arbitrage strategy. The risk-free rate of interest annually is 4% and storage costs are 1% of the spot price annually. There is no convenience yield.
8. 1. Calculate the theoretical forward price for this 3-month futures contract.
   2. If there is an arbitrage opportunity, what course of action should the trader take? Explain why.
   3. Show steps as well as inflows, outflows and profit/loss.