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31. You want to arbitrage between the spot oil market and the West TexasIn (WTI) crude contract for delivery in three months. Spot price is

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31. You want to arbitrage between the spot oil market and the West TexasIn (WTI) crude contract for delivery in three months. Spot price is $80 and the 3 month crude contract delivery price is $86. Storage costs to rent a super tanker for offshore storage averages S3 per barrel. What do you do? a) Buy the spot oil and buy the futures b) Sell the spot oil and buy the futures c) Buy the spot oil and sell the futures d) Sell the spot oil and sell the futures e) None of the above

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