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Homework answers / question archive / The current price of a bushel of No
The current price of a bushel of No. 1 Hard Red Winter Wheat is 5. The risk free rate is 2%.
Storage costs are 4%. Find the six month futures price. (5.1478)
Wheat= 5
Risk free rate= 2%
Storage cost= 4%
Six month future price= Wheat price* (1+ risk free rate+ Storage cost)
=5* (1+ 2%+ 4%)
= 5.3