Question
1) Copper spot price is $5.00 a pound. The cost of carry for copper is 7.00% and the current risk-free rate is 8.00%, both with
1) Copper spot price is $5.00 a pound. The cost of carry for copper is 7.00% and the current risk-free rate is 8.00%, both with continuous compounding. The future price is $5.25 for delivery in 1-year. What is the convenience yield on copper? PLEASE SHOW ALL FORMULA & WORK -----All rates are per annum with continuous compounding unless otherwise stated
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Theory Of Constraints Handbook
Authors: James Cox, John Schleier
1st Edition
0071665544, 978-0071665544
