In September 2020, the Mar 2021 cotton futures settlement price in the New York Board of Trade (NYBOT) was 72 cents per pound and the cash closing price of cotton in Lubbock, Texas, was 55 cents per pound. The simple short-term borrowing interest rate in the U.S. was 10% in September 2020. The local rate for storing and insuring cotton in Lubbock was 2 cents per pound per month. The shipping cost was estimated to be 1 cent per pound. There was no other cost. In Sep 2020, what was the full-carry futures price (cents per pound) of the March 2021 contract?

Question 17 Activities Cash Flow September 2020 Mar. 2021 Cotton futures @ 72 cents/pound 55.00 cents @ 10.00% interest rate cash cotton at @ 55.00 cents/pound March 2021 cotton against the short futures position the loan storage and insurance costs shipping cost Net Arbitrage Profit (cents/pound) Net Arbitrage Profit ($/ contract) Question 17 Activities Cash Flow September 2020 Mar. 2021 Cotton futures @ 72 cents/pound 55.00 cents @ 10.00% interest rate cash cotton at @ 55.00 cents/pound March 2021 cotton against the short futures position the loan storage and insurance costs shipping cost Net Arbitrage Profit (cents/pound) Net Arbitrage Profit ($/ contract)