Suppose that on nov 1st the price of corn is 250bushel the, Ask an Expert

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Suppose that on Nov 1st the price of corn is $2.50/bushel, the effective monthly interest rate is 1%, and storage costs per bushel are $0.05/month.

You know that corn is stored from Nov 1st to Feb 1st. Can you price the Feb 1st forward contract on one bushel of corn as of Nov 1st ?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92851776

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