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A pound of copper is currently trading at $4:36 per kg. A trader estimates that the price of copper will rise to $5 in the
A pound of copper is currently trading at $4:36 per kg. A trader estimates that the price of copper will rise to $5 in the next year. Suppose that he owns 10;000 kg of copper. If the interest rate is 8%, should he sell the copper today and deposit the amount in the bank, or wait until next year to sell the copper? Show your work.
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