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The spot price of oil is 50 per barrel and the cost of

The spot price of oil is $50 per barrel and the cost of storing a barrel of oil for one year is $3, payable at the end of the year. The risk-free interest rate is 2% per annum. What is an upper bound for the one-year futures price of oil? Suppose that the observed one-year futures price of oil is $59. Do investors have arbitrage opportunities here? What is an arbitrage strategy and its profit if your
answer to the previous question is yes?

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