Table 27.5 contains spot and six-month futures prices for several commodities and financial instruments. There may be some money-making opportunities. See if you can find them, and explain how you would trade to take advantage of them. The interest rate is 14.5 percent, or 7 percent over the six-month life of the contracts.

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Commodity Spot Price Futures Price Comments $2,550 per ton $.50 per pound $2,728.50 per ton $.514 per pound Magnoosium PV(storage costs) = PV(convenience yield). PVistorage costs) - $.10 per pound: PV(convenience yield) - $.05 per pound 4% semiannual coupon payment is due just before futures contract expires. Costaguanan interest rate is 95% per year. Frozen quiche Nevada Hydro 8s of 2002 Costaguanan pulgas (currency) Establishment Industries common stock 77 78.39 9,300 pulgas = $1 6,900 pulgas = $1 Establishment pays dividends of $2 per quarter. Next dividend is paid 2 months from now. $95 $97.54 Cheap white wine $12,500 per 10,000-gal. tank $14,200 per 10,000-gal. tank PV(convenience yield) = $250 per tank. Your company unexpectedly has surplus storage and can store 50,000 gallons at no cost.