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Expectations Hypothesis: Wholesale Price of Heating Oil

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Refer to a current issue of the Wall Street Journal. According to the expectations hypothesis, what is the best estimate for the wholesale price of heating oil next December?

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Solution Summary

This solution provides an analysis of the wholesale price of heating oil according to the expectations hypothesis.

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A current issue of the Wall Street Journal is "Oil Touches 2-Year High on Decline in Inventories " from http://online.wsj.com/article/SB10001424052748703805004575606233445787488.html?KEYWORDS=heating+oil

According to the market expectations hypothesis, the various maturities ...

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