To induce investors to buy futures contracts a risk premium, Financial Management

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To induce investors to buy futures contracts a risk premium

Suppose there is a commodity in which the expected future spot price is $60.

To induce investors to buy futures contracts, a risk premium of $4 is required. To store the commodity for the life of the futures contract would cost $5.50. Find the futures price.

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Financial Management: To induce investors to buy futures contracts a risk premium

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Financial Management: To induce investors to buy futures contracts a risk premium

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