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Assume the continuously compounded risk - free rate is 5 % , the annual storage cost of gas commodity is 1 0 % , and

Assume the continuously compounded risk-free rate is 5%, the annual storage cost
of gas commodity is 10%, and its convenience yield is 0.
Suppose there is no uncertainty. What is the minimum growth rate of gas price in one
month such that it is optimal to store gas now and sell in one month?
Hypothetically, if the growth rate of gas price without storage is 2% in one month. Would
people store and what would be the growth rate of gas price eventually?
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