Suppose that the price of corn is risky, with a beta of 0.5. The monthly storage cost is $0.08 per bushel, and the current spot price is $2.85, with an expected spot price in three months of $2.99. If the expected rate of return on the market is 1.6% per month, with a risk-free rate of 1% per month, what is the expected futures cost? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

	Expected futures cost

Would you store the corn for three months?

multiple choice

• Yes
• No