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2. Oil: Another Arbitrage Opportunity? Suppose that: - The spot price of oil is US$95 - The quoted 1-year futures price of oil is US$80

2. Oil: Another Arbitrage Opportunity? Suppose that: - The spot price of oil is US$95 - The quoted 1-year futures price of oil is US$80 - The 1-year US$ interest rate is 5% per annum - The storage costs of oil are 2% per annum Is there an arbitrage opportunity

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