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The spot price of corn is $5.85 per bushel. The effective interest rate for an investor is 0.5% per month. If storage costs of $0.04
The spot price of corn is $5.85 per bushel. The effective interest rate for an investor is 0.5% per month.
If storage costs of $0.04 per bushel per month are factored in, what is the likely price of a 4-month no-arbitrage forward contract?
$5.808
$6.059
$5.968
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