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You are a producer of coal. You expect to produce 1 0 0 tons in 6 months and 1 2 0 tons in 1 2
You are a producer of coal. You expect to produce tons in months and tons in months.
The futures contract price for copper is $ per ton in months and $ per ton in months.
The month Tbill has a yield of and the month Tbill has a yield of These are actual returns, not YTM where by convention the number reported in x mo rate.
Assume all transaction costs are zero.
You enter into futures contracts and buy and sell Tbills so that you have a fixed amount of dollars today with no other cash flows at any other point in time. How many dollars will you have today?
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