Suppose that

F_(1)

and

F_(2)

are two futures contracts on the same commodity with times to maturity,

t_(1)

and

t_(2)

, where

t_(2)>t_(1)

. Prove that\

F_(2)

\ Where

r

is the interest rate (assumed constant) and there are no storage costs. For the purposes of this problem, assume that a futures contract is the same as a forward contract.

Suppose that F1 and F2 are two futures contracts on the same commodity with times to maturity, t1 and t2, where t2>t1. Prove that F2F1er(t2t1). Where r is the interest rate (assumed constant) and there are no storage costs. For the purposes of this problem, assume that a futures contract is the same as a forward contract. Suppose that F1 and F2 are two futures contracts on the same commodity with times to maturity, t1 and t2, where t2>t1. Prove that F2F1er(t2t1). Where r is the interest rate (assumed constant) and there are no storage costs. For the purposes of this problem, assume that a futures contract is the same as a forward contract