Suppose you are a corn producer in St. Adolphe, Manitoba. You are presented with the opportunity to sign a contract to d

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Suppose you are a corn producer in St. Adolphe, Manitoba. You
are presented with the opportunity to sign a contract to deliver
500 tonnes of corn (which you have in grain bins on your farm) to a
buyer in Vancouver, BC in five months’ time, at a price of $255 per
tonne. The cost of shipping corn from St. Adolphe to
Vancouver is $15 per tonne. The cost of storing a tonne of
corn is $5 per tonne per month in St. Adolphe or in Vancouver. The
price of corn in St. Adolphe is expected to be $240 per tonne in
five months’ time. Should you sign the contract, or sell in
St. Adolphe five months from now? Note that all the prices and
costs are in Canadian dollar.
*Explain your answer.