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The spot price of oil is $92 per barrel, and the forward price for delivery in 3 months is $94 per barrel. Suppose you can

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The spot price of oil is $92 per barrel, and the forward price for delivery in 3 months is $94 per barrel. Suppose you can borrow and lend for 3 months at an interest rate of 4.3% (in annualized and continuouslycompouncted terms). Suppose that the cost of storing oil for 3 months is $5 per barrel, payable in advance. Calculate the cash-flow at maturity of the reverse cash \& carry strategy. (Note that storage costs are asymmetric: you have to pay storage costs if you are long oil, but you do not receive the storage costs if you short oil.) Express the cash-flow (use - to indicate a negative cash-flow) of the reverse cash \& carry strategy in $ with a margin of error +/0.01

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