28.

On March 25, 2021, the wheat futures contract traded on the CME Group with a delivery month in May 2021, has a futures price of 611 cents per bushel. On the same date, the open futures position of long and short hedgers in the contract is 16,495 and 18,504 contracts, respectively. According to Keynes' and Hicks' theory of the relationship between the futures and expected future spot price, which of the following is correct? a. The expected future spot price of wheat in May 2021 should be equal to $6.11 per bushel. Ob. The expected future spot price of wheat in May 2021 should be lower than $6.11 bushel. OC. The expected future spot price of wheat in May 2021 should be higher than $6.11 per bushel