Published by admin on September 15, 2020 Youareprovidedthefollowinginformation.Currentprice of wheat = $19000 for 5000 bushelsRisklessrate = 10 % (annualized)Costof storage = $200 a year for 5000 bushelsOne-yearfuturescontractprice=$20400 (foracontractfor5000bushels)a.What is F* (the theoretical price)?b.Howwouldyouarbitragethedifference […]