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On August 1st, you buy a 1000 barrels of crude oil on the cash market...

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Finance

On August 1st, you buy a 1000 barrels of crude oil on the cash market for $50/bbl. You hedge by selling an October crude oil contract at $55/bbl. Assuming convergence between cash and futures price in crude oil, what carrying charge would make this hedge a PERFECT HEDGE?

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