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?

Q2) Assume the price of the March futures is given. What would the price of the May futures need to be for this market to be in a state of "full carry"?

Q3) Suppose the physical storage costs for corn are $0.03/bushel/month and financing costs are an annualized interest rate of 3.5%. The cost to transport corn in mid-March (at the time of futures delivery) from Salina to a futures delivery location will be $0.10/bu. What is the cost of cash-and-carry arbitrage for someone who owns corn in storage in Salina?