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It is December 2022, and the spot price of corn is $6/bushel. The June 2023 corn futures contract price is $6.50/bushel. The risk-free rate is

It is December 2022, and the spot price of corn is $6/bushel. The June 2023 corn futures contract price is $6.50/bushel. The risk-free rate is 4%. Assume the FV of six-month corn storage costs are $0.20/bushel. You are a grain merchant, and own corn that is now stored in a silo. If you expect that the price of corn will fall over the next six months, it makes more sense to

Question 5 options:

Sell June futures contracts on corn

Sell corn now in the spot market

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