Question: 1 2 . Consider a forward contract on a commodity with storage costs. The spot price of the commodity is S 0 = 7 0

12. Consider a forward contract on a commodity with storage costs. The spot price of the commodity is S0=70, the interest rate is 4%, the contract matures in 6 months, and storage costs are 5, which are paid quarterly. What is the forward price?
12. Consider a forward contract on a commodity with storage costs.

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