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A farmer currently has 5,000 bushels of corn in inventory. She is considering two possibilities: sell to the mill today at $2.18 or sell with

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A farmer currently has 5,000 bushels of corn in inventory. She is considering two possibilities: sell to the mill today at $2.18 or sell with a three month futures contract at $2.24 per bushel. She is comparing two possibilities: selling and investing the cash for three months or storing for three months to sell under the terms of the futures contract. Storage costs are $0.01 per bushel per month, payable up front. She would borrow money for storage or invest at a risk free rate of 10% per year. If she sells today and invests, she would earn $

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