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(1) Compare two of the following. Include examples of each to clarify your explanation. Contango Backwardation NormalContango NormalBackwardation (2) Describe two problems in using the

(1) Compare two of the following. Include examples of each to clarify your explanation.

  • Contango
  • Backwardation
  • NormalContango
  • NormalBackwardation

(2) Describe two problems in using the Black option on futures pricing model for pricing options on Eurodollar futures.

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