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You operate a storage facility which is currently half full. The current cash price is PC = $200. The interest rate is 4% p.a., the
You operate a storage facility which is currently half full. The current cash price is PC = $200. The interest rate is 4% p.a., the lease rate is 0%. The market prices the one year forward at $218. Your own storage cost is 3%. What should you do?
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