Question: a commodity forward contract for delivery in six months in written with a forward price of 40. the underlying asset's price is 40. the interest
a commodity forward contract for delivery in six months in written with a forward price of 40. the underlying asset's price is 40. the interest rate is 5%p.a. and the convenience yield is 4% per year. is there a potential arbitrage profit? assuming there is a transaction cost of 0.3, and the commodity pays no dividends
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