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Please show work and do it step-by-step. Thank you! Assume a continuously compounded annual interest rate of 6%, 2.5% continuously paid dividend rate, storage cost
Please show work and do it step-by-step. Thank you!
Assume a continuously compounded annual interest rate of 6%, 2.5% continuously paid dividend rate, storage cost is 2% and a spot price for a 6-month commodity contract of $100, what is the forward price?
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