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Business, 22.03.2021 22:20 angelina0miles

Suppose you’re considering entering a short position on a 2-year futures contract on an investment asset that provides no income. Suppose the storage costs for the investment asset is $1.29 per unit per year, with the payment being made at the end of each year. If the spot price of the asset is $821 per unit and the continuously compounded risk-free interest rate is 4.5% per annum, what is the fair futures price? (Round your answer to 2 decimal places. Do not include $ sign.)

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