The spot price of cotton is $1.5000 per pound.

It costs 3 cents ($0.0300) per pound to store cotton for 1 year.

Storage costs are paid at the beginning of the year.

The risk-free rate is 2.00% CCAR.

Part A:

Calculate todays no-arbitrage price of a one-year cotton futures contract.

Please round your answer to the 100th of a penny.

Part B:

Calculate the time-zero arbitrage profit (if any) per pound of cotton if the quoted futures price is $1.8000.

Please round your answer to the 100th of a penny.

Part C:

Calculate the time-zero arbitrage profit (if any) per pound of cotton if the quoted futures price is $1.4000.

Please round your answer to the 100 of a penny

Part D:

Calculate the convenience yield in CCAR terms for the quoted futures price that has a non-zero convenience yield (either $1.8000 or $1.4000).