It is March 2020. The September 2020 corn futures contract price is $4.05/bushel. Spot corn prices are $4/bushel and the risk-free rate is 3%. Assume the FV of six-month corn storage costs are $0.16/bushel. If you expect that the price of corn will rise over the summer, it makes more sense to

Question 1 options:

	Buy September futures contracts on corn
	Buy corn now in the spot market

It is March 2021. The September 2021 corn futures contract price is $4.05/bushel. Spot corn prices are $4/bushel and the risk-free rate is 3%. Assume the FV of six-month corn storage costs are $0.16/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 summer, it makes more sense to

Question 2 options:

	Sell September futures contracts on corn
	Sell corn now in the spot market