Question
Corn selling for $5/bu. The May Futures contract for 2000 bu. is selling for $6/bu., a price reflects carrying cost. Assume the cash price for
Corn selling for $5/bu. The May Futures contract for 2000 bu. is selling for $6/bu., a price reflects carrying cost. Assume the cash price for corn is $3/bu. when you take your corn to market at maturity in late May. Also assume you take 4000 bu. to the market. what is the notional values?
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
10th Edition
1260013820, 978-1260013825
