Suppose the cotton (a storable commodity) futures prices are currently     Expiry Month Price c/lb December 2021 83 December 2022 96   (a) Is the cotton market in contango or in backwardation?  (b) What is the slope of the futures curve for cotton? Draw a future curve graph to support your answer.  (c) Are there positive returns to storage between Dec 21 and Dec 22? Draw a graph of supply and demand for storage to support your answer (where t=Dec 21 and t+1=Dec 22).

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