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Time 0 (Current) Spot (cash price of wheat) = $2 per State of the Economy Probability unit Forward price of wheat for delivery in

Time 0 (Current) Spot (cash price of wheat) = $2 per State of the Economy Probability unit Forward price of wheat for delivery in July 2020 = $2.01 per unit Excellent Normal Poor Forecast of prices in July 2020 Price of Silver 25% $2.20 50% $2.00 25% $1.80

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