Prove the given function, Suppose that F1 and F2 are two

Prove the given function

Reference no: EM131235840

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

where r is the interest rate (assumed constant) and there are no storage costs. For the purposes of this problem, assume that a futures contract is the same as a forward contract.

Reference no: EM131235840

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