Explain carefully what is meant by the expected price of a, Financial Management

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Explain carefully what is meant by the expected price of a

Explain carefully what is meant by the expected price of a commodity on a particular future date.

Suppose that the futures price for crude oil declines with the maturity of the contract at the rate of 2% per year.

Assume that speculators tend to be short crude oil futures and hedgers tend to be long. What does the Keynes and Hicks argument imply about the expected future price of oil?

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