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QUESTION
Wheat is selling for $25 spot. Storage costs are $2 for the year, and financing costs are 5% per year. What is the forward price for a one-year
Wheat is selling for $25 spot. Storage costs are $2 for the year, and financing costs are 5% per year. What is the forward price for a one-year forward contract for wheat?
Question 29 options:
a) $25.00
b) $26.25
c) $25.13
d) $28.25
