Question
Market/Contract Price (cents and 1/8 cents per bushel) Spot (Salina, KS) 364 March 2020 (ZCH20) 379'0 May 2020 (ZCK20) 384'6 July 2020 (ZCN20) 388'6 September
Market/Contract Price (cents and 1/8 cents per bushel)
Spot (Salina, KS) 364
March 2020 (ZCH20) 379'0
May 2020 (ZCK20) 384'6
July 2020 (ZCN20) 388'6
September 2020 (ZCU20) 387'4
December 2020 (ZCZ20) 392'0
Q1) Suppose the physical storage costs for corn are $0.03/bushel/month and borrowing costs are an annualized interest rate of 3.5%. How much does it cost (in $/bushel) to store soybeans from March to May?
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The Compensation Committee Handbook
Authors: James F. Reda, Stewart Reifler, Michael L. Stevens
4th Edition
1118370619, 978-1118370612
