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Exactly one year ago, you bought a certain item on a forward basis with delivery 3 years later. When the contract was concluded, the product
Exactly one year ago, you bought a certain item on a forward basis with delivery years later. When the contract was concluded, the product was priced according to the futures at SEK at the end of the term. The price was then calculated on the basis of an annual interest rate of plus a cost of storage. The storage cost is expressed as a percentage of the spot price for the day the item is stocked and applies for the entire time period with a fee of for years, for years and for year. Suppose the spot price for the commodity is $ today and the storage cost is calculated in the same way as a year ago, but the annual interest rate is now How much riskfree profit can you secure at the end of the term?
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