The Spot Price of Corn Is $5

question 8

Multiple Choice

The spot price of corn is $5.85 per bushel.The opportunity cost of capital for an investor is 0.5% per month.If storage costs of $0.04 per bushel per month are factored in,all else being equal,what is the likely price of a 4-month forward contract?

• A) $5.808
• B) $5.736
• C) $5.968
• D) $6.006

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Definitions:

Withdrawal of Love

A behavior in which affection, attention, and emotional support are intentionally withheld as a form of manipulation or punishment.

Hopscotch

A playground game involving throwing a small object into numbered spaces of a pattern of rectangles outlined on the ground and hopping through the spaces to retrieve the object.

Formal Games

Activities governed by a set of rules or customs and often engaged in competitively.

Power Assertion

A disciplinary technique that involves the use of authority or physical power to enforce rules and correct misbehavior.