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Suppose you observe the following prices: spot $5.00 futures for delivery in 1 month $6.00 futures for delivery in 2 months $7.00 Which picing moela
Suppose you observe the following prices: spot $5.00 futures for delivery in 1 month $6.00 futures for delivery in 2 months $7.00 Which picing moela beowa nitent wihthese observed prices? a. Expectations hypothesis b. Normal backwardation c. Spot-futures parity (cost of carry d. Contango
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