Question
2. Mary Daly takes a long position in a 9-month forward contract on oil. The current spot price for one bbl of oil is 49.00.
2. Mary Daly takes a long position in a 9-month forward contract on oil. The current spot price for one bbl of oil is 49.00. The 9-month forward price for one bbl of oil is 51.50. The continuously compounded risk free rate is 9%. What is her profit on the forward contract if the actual price of oil at the end of 9 months is 53.00?
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Structured Finance Leveraged Buyouts Project Finance Asset Finance And Securitization
Authors: Charles-Henri Larreur
1st Edition
1119371104, 978-1119371106
