Exercise 12.3.5 For futures, the cost of carry may be called cash and carry, which is the

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Exercise 12.3.5 For futures, the cost of carry may be called cash and carry, which is the strategy of buying the cash asset with borrowed funds. (1) Illustrate this point with futures contracts when the underlying asset pays no income. (2) Show that the cost of carry can be used to find the futures price in (1) set at full carry.

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