Question
It is December 2021. The spot price of soybeans is $16.55 per pound. Over the next year, borrowing cost are 5% CCAR and storage costs
It is December 2021. The spot price of soybeans is $16.55 per pound. Over the next year, borrowing cost are 5% CCAR and storage costs are 4% CCAR of the value of soybeans. There is also a 2% convenience yield on soybeans over the next year.
Calculate the current futures basis on soybeans.
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0256147175, 978-0256147179
