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Please be sure to show complete work. Copper is currently trading at $1.28/lb. Suppose three-month interest rates are 4% and the convenience yield on copper

Please be sure to show complete work.

Copper is currently trading at $1.28/lb. Suppose three-month interest rates are 4% and the convenience yield on copper is c = 3%

.(a) What is the range of arbitrage-free forward prices possible usingS0e(rc)T F S0erT(4.14)

(b) What is the lowest value of c that will create the possibility of the market being in backwardation?

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