Consider a farmer who is anticipating the harvest of his wheat crop in six months. The current forward price for wheat is $5.00 per bushel, and the farmer has secured a forward contract to sell 10,000 bushels at this price. Assume that the risk-free rate is 2% per annum, and the storage cost for the wheat is $0.10 per bushel for the six-month period.
Calculate the fair forward price at which the farmer could theoretically sell his wheat, considering the time value of money and the cost of storage. What does the fair price imply regarding the farmer's contract?