1. There are three different grades of corn deliverable into the corn futures contract. The price adjustments for each delivery grade is listed as follows: #2 Yellow at contract price, #1 Yellow at a 6 cent/bushel premium, #3 Yellow at a 6 cent/bushel discount. If Corn futures for September are trading at $3.35/bu., and #2 Yellow is trading in the spot market at $3.36, #1 Yellow at $3.44, and #3 Yellow at $3.31, which grade is cheapest-to-deliver?
   1. #2 Yellow
   2. #1 Yellow
   3. #3 Yellow

2. December 2019 Ultra T-Bond futures are trading at $154.00. Ignoring accrued interest, which of the following bonds is "cheapest-to-deliver"?
   1. Bond A: Market Price=$139; conversion factor =.88
   2. Bond B: Market Price=$127; conversion factor =.82
   3. Bond C: Market Price=$140; conversion factor=.86
   4. Bond D: Market Price=$104; conversion factor=.65
   5. Bond E: Market Price=$99; conversion factor=.63

3. The Euro is trading at $1.20 in the spot market. If the US 9-month risk free rate is 1.35% and the 9-month Euro risk-free rate is 0.25%, what should be the price of the 9-month forward currency contract?
   1. $1.1877
   2. $1.1901
   3. $1.1978
   4. $1.2099
   5. $1.2132

Please provide an explanation to the answers