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The 4-month and 10-month forward prices for copper are $4.5878/lb and $4.7228/lb respectively. The storage cost is 2.1% p.a. (continuous compounding). What is the 14-month
The 4-month and 10-month forward prices for copper are $4.5878/lb and $4.7228/lb respectively. The storage cost is 2.1% p.a. (continuous compounding). What is the 14-month forward price? How to make an arbitrage profit if the 14-month forward price is $4.9825/lb? (Please show transactions on 500 lb. Assuming that there is no convenience yield on copper
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The Meaningful Money Handbook
Authors: Pete Matthew
1st Edition
0857196510, 978-0857196514
