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1 2 . Consider a forward contract on a commodity with storage costs. The spot price of the commodity is S 0 = 7 0

12 .

Consider a forward contract on a commodity with storage costs. The spot price of the commodity is S

0 = 70,

the interest rate is

4 %,

the contract matures in

6

months, and storage costs are

5,

which are paid quarterly. What is the forward price?

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