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ection 2 - Choose 3 of the following 5 1. Cardinal Farming is expected to have 400,000 bushels of corn in 1 month. Corn sells
ection 2 - Choose 3 of the following 5 1. Cardinal Farming is expected to have 400,000 bushels of corn in 1 month. Corn sells for $5 a bushel today. The forward rate on a 2-month future (5000 bushels) is $4.9. In 1 month, the spot rate is $4.7. In 1 month, the forward rate on the future is $4.75. Cardinal farming is afraid that will happen to the price. Cardinal farming should (buy/sell) (number) of contracts. Cardinal farming will have an Opportunity of $ Cardinal farming will have a of on their futures. Cardinal farming will receive a total of $ ection 2 - Choose 3 of the following 5 1. Cardinal Farming is expected to have 400,000 bushels of corn in 1 month. Corn sells for $5 a bushel today. The forward rate on a 2-month future (5000 bushels) is $4.9. In 1 month, the spot rate is $4.7. In 1 month, the forward rate on the future is $4.75. Cardinal farming is afraid that will happen to the price. Cardinal farming should (buy/sell) (number) of contracts. Cardinal farming will have an Opportunity of $ Cardinal farming will have a of on their futures. Cardinal farming will receive a total of $
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