a. What are some possible explanations for the shape of this forward curve?

b. What annualized rate of return do you earn on a cash-and-carry entered into in December 2004 and closed in March 2005? Is your answer sen- sible?

c. What annualized rate of return do you earn on a cash-and-carry entered into in December 2004 and closed in September 2005? Is your answer sensible?

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