Hello I am not fully understanding chapter 7 section 1.6 (Commodities) What is the link between: 1) Contagion and backwardation 2) No arbitrage pricing argument 3) A commodity being held for investment 4) No available arbitrageurs 5) The two futures pricing formulae Some clarity or reference to a source with a more clear explanation will be appreciated. Please help.
question Hi I dont fully understand what the question here relates to. Does anyone else feel they have an angle on this one?
