On september 26 the spot price of wheat was 35225 per, Ask an Expert

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On September 26 the spot price of wheat was $3.5225 per bushel and the price of a December wheat futures was $3.64 per bushel. How do you interpret the futures price if there is no risk premium in the futures market ?

Explain why American call options on futures could be exercised early when call options on the spot are not. Assume that there are no dividends.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92080531

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