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Suppose the price of copper is $4.10 per ounce. Copper purchased as an investment must be stored until it is sold. The storage cost must
Suppose the price of copper is $4.10 per ounce. Copper purchased as an investment must be stored until it is sold. The storage cost must be paid monthly in advance and is $0.10 per ounce per month. Assume the risk-free interest rate is 3.5% compounded continuously. Find the price of a forward contract for an ounce of copper due to be delivered to the buyer in 6 months. a
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