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Suppose that there are no storage costs for greasy wool and theinterest rate for borrowing or lending is 3% per annum. The greasywool futures contract for December 2012 is quoted at AUD 9.55 perkilogram, while the June 2013 contract is quoted at AUD 9.89 perkilogram. One contract is for delivery of 2500 kilograms. How couldyou make money by trading the December 2012 and June 2013 greasywool futures contracts today?

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Nestor Rutherford
Nestor RutherfordLv2
28 Sep 2019

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