The spot price of oil is $75 a barrel. The volatility of oil prices is extremely high
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The spot price of oil is $75 a barrel. The volatility of oil prices is extremely high at present. You think you can take advantage of this by placing a limit order to buy futures at $70 and a limit order to sell futures at $80 per barrel. Explain when this strategy will work and when it will not.
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This strategy has the deceptive attraction of being a buylow and s...View the full answer
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