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Find the fair value of a july cpo futures contract

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Find the fair value of a July CPO futures contract (assume it will mature exactly 3 months from today) given the spot price of CPO is RM2,000/ton, the risk-free rate is 4% p.a. and the storage cost is 4% p.a. If the July CPO futures contract is now trading at RM2,200, is there an arbitrage opportunity? If there is, what will be your arbitrage strategy now?

Reference no: EM133118755

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