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3. Calculate the net effect that a change in the annually compounded risk-free rate from 6.83 percent to 6.60 percent would make on the price

3. Calculate the net effect that a change in the

annually compounded risk-free rate from 6.83

percent to 6.60 percent would make on the price

of a commodity futures contract whose spot price

as of March 30 was $49.90, assuming that there is

a $5.60 storage cost and the futures contract

expires on November 30.

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