You are a farmer who is expecting to harvest a wheat in a 2 years. You've enter an agreement to loan a storage for a wheat. The price of storing your harvest is 700 PLN per year and it is accrued only if storage is used (payment is made at the beginning of the period during which storage will be used). What should be a minimal delivery price of a 3Y forward contract for a delivery of 1,000 kg of wheat, if the spot price of wheat is 3 PLN per kg and expected market rates are 10% pa. would you enter such a contract if you knew that starting from the beginning of 3rd year market rates will increase to 30%