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(2) Ahmed decided to enter into a wheat forward contract, which will enable him to sell his production of wheat in seven months. The current

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(2) Ahmed decided to enter into a wheat forward contract, which will enable him to sell his production of wheat in seven months. The current spot price for wheat is AUD 1,000 and the Australian risk free rate is 5%. The * initial forward price for the wheat futures contract is closest to AUD 1,029 AUD 1,000 O AUD 972 O

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