The spot price of oil is $80 per barrel and the cost of storing a barrel of

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The spot price of oil is $80 per barrel and the cost of storing a barrel of oil for one year is

$3, payable at the end of the year. The risk-free interest rate is 5% per annum continuously compounded. What is an upper bound for the one-year futures price of oil?

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Options Futures And Other Derivatives

ISBN: 9780273759072

8th Global Edition

Authors: John Hull

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Question Posted: Oct 21, 2024 08:00 AM

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The spot price of oil is $80 per barrel and the cost of storing a barrel of

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Options Futures And Other Derivatives

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