Suppose that Fl and F2 are two futures contracts on the same commodity with times to maturity,

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Suppose that Fl and F2 are two futures contracts on the same commodity with times to maturity, t\ and t2, where t2 > t\. Prove that F2 <: Fler^'ti)

where r is the interest rate (assumed constant) and there are no storage costs. For the purposes of this problem, assume that a futures contract is the same as a forward contract.

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