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Question 164 points The use of futures contracts for example, index futures to convert a position from one asset category (stocks) to another bonds) is

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Question 164 points The use of futures contracts for example, index futures to convert a position from one asset category (stocks) to another bonds) is called O asset allocation carry market O futures overlay alpha porting Question 17 (4 points) The spot price of gasoline is 500 cents per gallon and the annualized risk free interest rate is 5.0%. Given a lease rate of 2.0%, a continuously paid storage rate of 1.596, and a convenience yield of 1.75%, what is the no-arbitrage price range of a 1- year forward contract in cents? 513.94 to 523.01 506.29 to 515.23 519.11 to 528.27 498.75 to 507156

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