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Futures contract is the same as a forward contract

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Suppose that F1 and F2 are two futures contracts on the same commodity with times to maturity, t1 and t2, where t2 > t1. Prove that F2 ≤ F1e r(t2-t1), where r is the interest rate (assumed) constant) and there are no storage costs. For the purpose of this problem, assume that a futures contract is the same as a forward contract.

Reference no: EM132466070

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