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Suppose that F is the 3-year forward price of the commodity. If F is relatively high, the trader can borrow $ 1,266 at 5.03 %,

Suppose that F is the 3-year forward price of the commodity. If F is relatively high, the trader can borrow $ 1,266 at 5.03 %, buy one ounce of the commodity and enter into a forward contract to sell the commodity in 3 year for F. The profit made in 3 year is

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