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plz answer all parts in excel with working formulas 02 On September 25 the spot price of wheat was $3.5723 per bushel and the price

image text in transcribedplz answer all parts in excel with working formulas

02 On September 25 the spot price of wheat was $3.5723 per bushel and the price of a December wheat futures was $3.69 per bushel. The interest foregone on money tied up in a bushel until expiration is $0.03 and the cost of storing the wheat is $0.0875 per bushel. The risk premium is $0.03 per bushel. a) What is the expected price of wheat on the spot market in December? Note, please put all of your answers in the boxes as indicated b) Show how the futures price is related to the spot price. c) Show how the expected spot price at expiration, your answer I part a, is related to the futures price today. d) Show how the expected futures price at expiration is related to the futures price today. e) Explain who earns the risk premium and why. 02 On September 25 the spot price of wheat was $3.5723 per bushel and the price of a December wheat futures was $3.69 per bushel. The interest foregone on money tied up in a bushel until expiration is $0.03 and the cost of storing the wheat is $0.0875 per bushel. The risk premium is $0.03 per bushel. a) What is the expected price of wheat on the spot market in December? Note, please put all of your answers in the boxes as indicated b) Show how the futures price is related to the spot price. c) Show how the expected spot price at expiration, your answer I part a, is related to the futures price today. d) Show how the expected futures price at expiration is related to the futures price today. e) Explain who earns the risk premium and why

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