Wheat is selling for $25 spot. Storage costs are $2 for the year, and financing costs are 5% per year. What is the forward price for a one-year

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Wheat is selling for $25 spot. Storage costs are $2 for the year, and financing costs are 5% per year. What is the forward price for a one-year forward contract for wheat?

Question 29 options:

a) $25.00

b) $26.25

c) $25.13

d) $28.25

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