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(1 point) I am starting my own brewery and I know that I will need several tonnes of barley 6 months from now. The current
(1 point) I am starting my own brewery and I know that I will need several tonnes of barley 6 months from now. The current (.e. spot) price of barley is $205 per ton, and the relevent rate of interest is 1% compounded continuously. A forward contract (in which I would take delivery in 6 months) is available, with a delivery price of $215.05 per tonne. a) How much would it cost me, in today's dollars, to buy my barley through the forward market? Please round your answer to the nearest cent. $ b) How much would it cost me, in today's dollars, to buy my barley through the spot market, assuming there are no storage costs? Please round your answer to the nearest cent. $ c) Assuming there are no storage costs, should I buy my barley through the spot market or the forward market? d) How much would it cost me, in today's collars, to buy my barley through the spot market, assuming it costs $3 per month (payable at month end) to store barley? Please round your answer to the nearest cent. $ e) Assuming storage costs are as in d), should I buy my barley through the spot market of the forward market
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