Consider a futures contract on mangoes that calls for the delivery of 2,000 pounds of the fruit

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Consider a futures contract on mangoes that calls for the delivery of 2,000 pounds of the fruit three months from now. The spot price of mangoes is $2 per pound. The three-month riskfree rate is 2%. It costs $.10 per pound to store mangoes for three months. What should be the price of this futures contract?
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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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