Question
A commoditys spot price as of December 31 is $38/unit, and storage costs are $0.62/unit at the end of every month, starting January 31. If
A commoditys spot price as of December 31 is $38/unit, and storage costs are $0.62/unit at the end of every month, starting January 31. If the effective monthly interest rate is 1.2% (compounded monthly, not continuously), what will be the forward price for delivery at the end of Aug, assuming the commodity is stored?
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The Ascendancy Of Finance
Authors: Joseph Vogl, Simon Garnett
1st Edition
1509509305, 978-1509509300
