Question: 1 9 . A forward contract on a commodity with storage costs has a spot price of S 0 = 7 5 and storage costs
A forward contract on a commodity with storage costs has a spot price of S and storage costs are per year. The riskfree interest rate is per year. The theoretical forward price for a year contract is F but the observed forward price in the market is F Which arbitrage strategy could you use?
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