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Suppose that February platinum futures were actively traded today, and settled at $1,080 per oz, based on the price of the last trade of the
Suppose that February platinum futures were actively traded today, and settled at $1,080 per oz, based on the price of the last trade of the day. What settlement price would you recommend that the clearing house use for the July-delivery contract (suppose the July contract did not trade at all today)? Assume that the continuously compounded risk-free interest rate is 2.0% and that the February and July delivery dates are exactly 5 months apart.
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