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Farmer Carter will harvest 250,000 bushels of corn in 4 months. The current spot rate is $4 a bushel. Forward rate on a 5-month Future
Farmer Carter will harvest 250,000 bushels of corn in 4 months. The current spot rate is $4 a bushel. Forward rate on a 5-month Future contract (5000 bushels) is $3.5 a bushel. In 4 months, the spot rate is $3.2 a bushel and the forward rate of the Future contract is $3.0 a bushel. What is the gain in the futures? A 75000 B 100000 125000 D 200000
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
