Use this information for Questions 15 to 17. Imagine today is March 1" Speculator Garth notices that today the May corn futures price is $5.00 and the July corn futures price is $6.00. Garth predicts cost of carry to be $0.01 per day and convenience yield to be $0.00 between the expiration of the May and July contracts (assume this time span is 60 days). Garth is very confident in his prediction for coc and y. 15. True or False: Garth believes, based on his prediction of coc and y, the July price is too low compared to the May price. 16. Calculate the actual spread on March 1": a. $1.00 b. $0.60 0.50.40 d. $0.01 17. Based on Garth's predictions what spread does Garth think the spread should be on March 14: a:$1.00 .$0.40 $0.60 d.$0.01 18. What is the primary advantage for a short hedger of trading a short collar versus taking the appropriate position in a futures contract (assume a hedge ratio of 1.00)? a. the short collar eliminates all price uncertainty b, the short collar allows for more upside if prices go up c the short collar locks in a price and eliminates all price risk . & 7 % 5 N O 3 4 8 E R T Y O P U D F G HJ cllv V B N M