Question in Finance

12. Spot price for soybean meal is $152.70 per ton and the 12-month soybean-meal futures is traded at $148.00. The 1-year interest rate is 3%. (a) What is the net convenience yield on soybean meal for the 12 month period? (b) You need 1,000 tons of soybean meal in 12 months. How would you lock into a price today using the futures contracts? (The size for each soybean-meal futures contract is 100 tons.)