Today is January 1. The price of a July forward contract on corn (delivery date is July 1) is $5.17 per bushel. The spot price of corn is $4.80 per bushel. You can store corn until July 1 for $0.15 per bushel (paid in advance) and you can borrow or lend money at a riskless interest rate of 4% (annualized and continuously compounded). (a) Demonstrate how you could earn costless arbitrage profits by trading at these prices. Be sure to clearly identify the amount of your profits and when they are received. (b) What prevents you from repeatedly executing this arbitrage to earn unlimited profits? (c) Suppose it is now April 1. The July forward price is now $6.52 per bushel, the spot price is $6.49 per bushel and the riskless interest rate is still 4%. Given these prices, should you "unwind" the arbitrage executed in part (a) or should you continue holding the position until July 1 ? Today is January 1. The price of a July forward contract on corn (delivery date is July 1) is $5.17 per bushel. The spot price of corn is $4.80 per bushel. You can store corn until July 1 for $0.15 per bushel (paid in advance) and you can borrow or lend money at a riskless interest rate of 4% (annualized and continuously compounded). (a) Demonstrate how you could earn costless arbitrage profits by trading at these prices. Be sure to clearly identify the amount of your profits and when they are received. (b) What prevents you from repeatedly executing this arbitrage to earn unlimited profits? (c) Suppose it is now April 1. The July forward price is now $6.52 per bushel, the spot price is $6.49 per bushel and the riskless interest rate is still 4%. Given these prices, should you "unwind" the arbitrage executed in part (a) or should you continue holding the position until July 1