commodity forwards why we borrow at Q1 & 3, and why we do NOT borrow at Q2?

I am also confused. Anyone can help ?

In the 2nd question are calculating what the risk-free rate should be to borrow the funds… In the other questions, are given that rate…

kurmanal Wrote: ------------------------------------------------------- > In the 2nd question are calculating what the > risk-free rate should be to borrow the funds… > > In the other questions, are given that rate… You mean what is the risk-free rate implied in the forward price ? If so, I get it.

sorry, I missed “we” in both sentences… %) yes, that is the implied rate in the forward price…to avoid any arbitrage