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March 1 9 8 9 copper futures settlement prices. Assume the following: ( 1 ) The holding period between the gold contracts is two months

March 1989 copper futures settlement prices.
Assume the following:
(1) The holding period between the gold contracts is two months and the holding period between
the copper contracts is three months.
(2) The three-month T-Bill rate implied by the October 12,1988 T-bill futures contract was 7.36%.
(3) The storage costs for gold is $6? month plus a $14 one-time transfer fee for the gold covered by
each gold futures contract.
(4) The storage costs for copper is $39.50/month plus a $3.95 one-time transfer fee for the copper
covered by each copper futures contract.
(5) The costs in (3) and (4) are paid when the metal is taken out of storage.
Commodity Futures Transactions Prices, October 12,1988
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