write my assignment 11430

Im having issues solving the following problems in my financial risk management course. If you could show me how to work each one out, that would be wonderful!

  1. Corn spot price is 610 cents/bushel, its 12-month forward price is 587 cents/bushel. What is the implied lease rate on the 12-month corn forward contract if the risk-free rate is 4%?
  2. Corn spot price is 610 and the 24-month futures price is 570. Given a lease rate of 7.0% and risk-free rate 4% on the 24-month corn forward contract, what is the approximate potential arbitrage profit per contract?
  3. The spot price of gasoline is 258 cents per gallon and the annualized risk free interest rate is 3.0%. 
  4. Given a continuously paid storage rate of 0.5%, and a convenience yield of 0.75%, 
  5. what is the no-arbitrage price range of a 1-year forward contract (in cents)?
  6. The spot price of corn is $5.85 per bushel. The effective interest rate for an investor is 0.5% per month. 
  7. If storage costs of $0.04 per bushel per month are factored in, what is the likely price of a 4-month no-arbitrage forward contract?
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