=+9. An 18-month short forward contract on 1,000 barrels of crude oil is entered into when the

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=+9. An 18-month short forward contract on 1,000 barrels of crude oil is entered into when the commodity price is $60.4 per barrel1 and the interest rate is 2% p.a. with continuous compounding. (Neglect costs of storage and convenience yields.)

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Introductory Course On Financial Mathematics

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Authors: M V Tretyakov

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=+9. An 18-month short forward contract on 1,000 barrels of crude oil is entered into when the

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Introductory Course On Financial Mathematics

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