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Forward contract on one bushel of corn

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Reference no: EM133121921

Suppose that on Nov 1s the price of corn is $2.50/bushel, the effective monthly interest rate is 1%, and storage costs per bushel are $0.05/month. You know that corn is stored from Nov 1 to Feb 1st. Can you price the Feb 1s forward contract on one bushel of corn as of Nov 1:?

Reference no: EM133121921

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