The spot price of soybeans is $13.57 per bushel, which costs…
The spot price of soybeans is $13.57 per bushel, which costs $0.14 per bushel to store per month (payable at the start of the month). The risk-free rate has a flat term structure with a rate of 4.10 percent per year for all maturities. What is the highest possible arbitrage-free price for a two-month contract?
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