Assume that the September futures price of wheat is $2.50 per bushel and the December price is

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Assume that the September futures price of wheat is $2.50 per bushel and the December price is $2.55 per bushel. You expect the positive price differential to widen in the next few months.

a. What would you do if you were right?

b. Assume that the September contract rose to $2.52 and that of December to $2.59. What would this new situation do to your futures position?

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Understanding Investments Theories And Strategies

ISBN: 9780367461904

2nd Edition

Authors: Nikiforos T. Laopodis

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Question Posted: Oct 26, 2024 06:01 AM

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Assume that the September futures price of wheat is $2.50 per bushel and the December price is

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Understanding Investments Theories And Strategies

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