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2) Suppose that there are no storage costs for crude oil and the interest rate for borrowing or lending is 6% compounded continuously per annum.

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2) Suppose that there are no storage costs for crude oil and the interest rate for borrowing or lending is 6% compounded continuously per annum. Suppose further that it is currently March. How could you make money if the futures prices of the June and December oil contracts for that year are $70 and $75, respectively

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