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Please show work. PROBLEM 3 Spot price of wheat is 43200/bu. The total interest rate on five-month loans and deposits is 1.60%. The storage cost
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PROBLEM 3 Spot price of wheat is 43200/bu. The total interest rate on five-month loans and deposits is 1.60%. The storage cost is 0.25% of the asset value per month paid at the end of the storage period. Assuming no transaction cost, determine the no-arbitrage price for a wheat futures contract maturing five months from now. Note. Round all results to four decimal places. PROBLEM 4 Spot price of gold is $1,275.00/02. The total interest rate on three-month loans and deposits is 1.20%. The storage cost is s45.9o/oz per year prorated for the length of the storage period and paid upfront. Assuming no transaction cost, determine the no-arbitrage price for a gold futures contract maturing three months from now. Note. Round all results to four decimal placesStep by Step Solution
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