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The current price of a bushel of No

Finance

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)

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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