Youareprovidedthefollowinginformation.Currentprice of wheat = $19000 for 5000 bu

Youareprovidedthefollowinginformation.Currentprice of wheat = $19000 for 5000 bushelsRisklessrate = 10 % (annualized)Costof storage = $200 a year for 5000 bushelsOne-yearfuturescontractprice=$20400
(foracontractfor5000bushels)a.What is F* (the theoretical price)?b.Howwouldyouarbitragethedifference
betweenFandF*?(Specifywhatyoudonowandat expiration and what your arbitrage
profits will be.)c.Ifyoucansellshort(Cost$100for5000bushels)andcannotclaimanyofthestoragecostfor
yourselfonshortsales2atwhatratewouldyouhavetobeabletolendforthisarbitragetobe
feasible?