Question he cash price of natural gas is $4 per million BTU at the Henry Hub and the storage cost is $0.50 per month per million BTU. The price on a front-month NYMEX natural gas futures contract (i.e., a futures contract for natural gas delivery in one month) is $5 per million BTU. Question he cash price of natural gas is $4 per million BTU at the Henry Hub and the storage cost is $0.50 per month per million BTU. The price on a front-month NYMEX natural gas futures contract (i.e., a futures contract for natural gas delivery in one month) is $5 per million BTU. How could a trader take advantage of this arbitrage
Question
he cash price of natural gas is $4 per million BTU at the Henry Hub and the storage cost is $0.50 per month per
million BTU. The price on a front-month NYMEX natural gas futures contract (i.e., a futures contract for natural gas delivery in one month) is $5 per million BTU. How could a trader take advantage of this arbitrage