A farmer is preparing to plant corn and expects to deliver his crop to the market in
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Question:
A farmer is preparing to plant corn and expects to deliver his crop to the market in year. The yield on US tbills is and it costs to store corn for year. If the spot price of corn is $bushel today, what price can the farmer expect to lock in with a year futures contract? Hint: Be sure to use continuous compounding. pls put to decimal places!
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