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Consider a futures contract on a commodity 18 months prior to delivery. The current cash price is P_C= $295. The interest rate is 4% p.a.,

Consider a futures contract on a commodity 18 months prior to delivery. The current cash price is P_C= $295. The interest rate is 4% p.a., the storage cost = 2% p.a., the lease rate is 3% p.a What is the no-arbitrage futures price?

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