Question
The current price of wheat is $3.70 and the expenses for carrying wheat (combined cost of storage, insurance, shipping) are 20 percent of the price.
The current price of wheat is $3.70 and the expenses for carrying wheat (combined cost of storage, insurance, shipping) are 20 percent of the price. Based on this information, what should be the price of wheat after a year? What would you do if the futures price were $4.55?
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
