Table 61 -Refer to the Table 6

Table 6.1
$\begin{array}{lccc}\begin{array}{c}\text { Expiration } \\\text { Time }\end{array} & \begin{array}{c}\text { Wheat } \\\text { Cents/Bushel }\end{array} & \begin{array}{c}\text { Corn } \\\text { Cents/Bushel }\end{array} & \begin{array}{c}\text { Soybeans } \\\text { Cents/Bushel }\end{array} \\\hline \text { Today }=\text { spot } & 540 & 610 & 1320 \\6 \text { months } & 560 & 600 & 1350 \\12 \text { months } & 590 & 587 & 1480 \\18 \text { months } & 625 & 580 & 1370 \\24 \text { months } & 655 & 570 & 1265\end{array}$
-Refer to the table 6.1.Given a lease rate of 7.0% on the 24-month corn forward contract,what is the approximate potential arbitrage profit per contract?

A) 3.68 cents
B) 4.48 cents
C) 5.84 cents
D) 6.90 cents

Correct Answer:

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