(a) What is the difference between a “hedger” and “arbitrager?" (b)What is the difference between a “speculator” and an “arbitrager?” (c)Suppose that you observe today, June 16, 2021, that the spot...

(a) What is the difference between a “hedger” and “arbitrager?"

(b)What is the difference between a “speculator” and an “arbitrager?”

(c)Suppose that you observe today, June 16, 2021, that the spot price for corn is $5.74 per bushel and the January 2022 futures price is $5.95 per bushel. You expect corn will sell in January 2022 for a price of $6.50 per bushel. For you, the cost of storing corn per month is 3 cents per bushel.

a.         If you are a speculator, what do you do? _______________________

b.         If you are an arbitrager, what do you do? _______________