Question 4. a) Warehouse receipts and futures contracts i) On November 6, 2018, President Akuffo-Addo launched the beginning of trading of commodities on the Ghana Commodity Exchange, GCX. It is a fact that, an effective Warehouse Receipt System is fundamental to a successful commodity exchange and has the potential to partially relieve the liquidity challenges that smallholder African farmers have. Briefly but precisely, state how a generic warehouse receipt system works. ii) State the commodities that are currently traded on the GCX. What are their grades? iii) Suppose the spot price of maize is GHS 20 per olonka and the three-month futures price is GHS 30 per olonka. If the interest rate is 24% p.a., and the storage cost of maize is GHS 40 per bag of 10 olonkas of maize per year payable at the end of the contract, how might arbitrage profit on a bag of maize be made? Please explain step-by-step and remember continuous compounding. iv) Apparently, another entity issues more warehouse receipts than the GCX. Write a short paragraph on the business of this entity. What is its name?