Question
A commoditys spot price as of December 31 is $44/unit, and storage costs are $0.58/unit at the end of every month, starting January 31. If
A commoditys spot price as of December 31 is $44/unit, and storage costs are $0.58/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 August, assuming the commodity is stored?
| a. | $53.51 | |
| b. | $53.25 | |
| c. | $53.38 | |
| d. | $53.05 | |
| e. | $48.84 |
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Makers And Takers The Rise Of Finance And The Fall Of American Business
Authors: Rana Foroohar
1st Edition
0553447238, 978-0553447231
