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Inventory of one million bushels in storage

The following prices are observed. Formulate an arbitrage strategy to profit from the situation.

- Wheat is $2.00 per bushel spot and $2.03 per bushel for 180-day futures.

- U.S. interest rate is 10.00% compounded daily.

- Storage cost in a bonded, insured warehouse is $0.10 per bushel (prepaid) for a 180-day period, and you already have an inventory of one million bushels in storage.

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Finance Basics: Inventory of one million bushels in storage

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