The spot price of corn is $5.82 per bushel. The opportunity cost of capital for an investor is 0.6% per month

If storage costs of $0.03 per bushel per month are factored in, all else being equal, what is the future value of storage costs over a 6-month period?
A) $0.1534
B) $0.1684
C) $0.1772
D) $0.1827


D

Business

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Total quality management and just-in-time manufacturing focus on quality improvement as well as on time customer deliveries.

Answer the following statement true (T) or false (F)

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Assume you write a futures contract on corn at $4.05 per bushel. Over the next 5 trading days the contract settled at $4.07, $4.05, $4.04, $4.02, and $4.04. You then decide to reverse your position in the futures market on the fifth day at close. What is the net amount you receive on this contract per bushel?

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What will be an ideal response?

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