Question: Consider a one year fully collateralized commodity futures position on a commodity that experiences a 3 % decline in its spot price. Over that same

Consider a one year fully collateralized commodity futures position on a commodity that experiences a 3% decline in its spot price. Over that same year, the basis in the commodity fell from the spot price exceeding the futures price by 5% to a basis of 2%. The riskless interest rate was 4%. What is the excess return of the futures contract? (The answer format is the x in x%, e.g.,3 for 3%.)

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