Future prices of the corn to store for 3 months when the expected rate of return is 0.9% per month, risk-free rate 0.5% per month. Introduction: Future price of any commodity is the price tag in the near future which is decided by the market position. The corn prices are varying with beta value 0.5 and expected value for three months is $5.88 with storage cost $0.3.

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Chapter 23, Problem 20PS

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To calculate: Future prices of the corn to store for 3 months when the expected rate of return is 0.9% per month, risk-free rate 0.5% per month.

Introduction: Future price of any commodity is the price tag in the near future which is decided by the market position. The corn prices are varying with beta value 0.5 and expected value for three months is $5.88 with storage cost $0.3.

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