We witnessed a historic event in the commodity market in April 2020. The oil futures price...
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We witnessed a historic event in the commodity market in April 2020. The oil futures price plunged into negative. There are many reasons behind this puzzling phenomenon. Does our formula For=Soe(r-)T applicable to oil futures? If not, what are the other factors to consider when we price oil futures? Please give 2 factors apart from risk-free interest rate and current oil price, Time to Maturity We witnessed a historic event in the commodity market in April 2020. The oil futures price plunged into negative. There are many reasons behind this puzzling phenomenon. Does our formula For=Soe(r-)T applicable to oil futures? If not, what are the other factors to consider when we price oil futures? Please give 2 factors apart from risk-free interest rate and current oil price, Time to Maturity
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Answer In summary while the formula for pricing futures contracts provides a foundational framework ... View the full answer
Related Book For
Basic Business Statistics Concepts And Applications
ISBN: 9780132168380
12th Edition
Authors: Mark L. Berenson, David M. Levine, Timothy C. Krehbiel
Posted Date:
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