In the Schwartz and Smith [59] model the forward curve at any time in the risk-neutral world

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In the Schwartz and Smith [59] model the forward curve at any time in the risk-neutral world depends on:

(a) The short-term deviation in prices and the equilibrium price level;

(b) The short-term deviation in prices and the convenience yield;

(c) The short-term deviation in prices and the risk premium;

(d) The short-term deviation in prices and the seasonality.

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