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3. (i) It is May 2009. Your storage costs for crude oil is $0.55 per barrel per month (to be paid at the end of
3. (i) It is May 2009. Your storage costs for crude oil is $0.55 per barrel per month (to be paid at the end of the storage period) and the interest rate for borrowing or lending is 5% per annum, continuously compounded. The June 2009 and December 2009 futures contracts trade at $80 and $86, respectively. Ignoring daily settlements, is there an arbitrage opportunity for you and, if so, how much money can you make from it? Round to 3 decimal places
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