The market price of risk for copper is 0.5, the volatility of copper prices is 20% per
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The market price of risk for copper is 0.5, the volatility of copper prices is 20% per annum, the spot price is 80 cents per pound, and the six-month futures price is 75 cents per pound. What is the expected percentage growth rate in copper prices over the next six months?
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In a riskneutral world the expected price of copper in six months is 75 cents Thi...View the full answer
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