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A commoditys spot price as of December 31 is $46/unit, and storage costs are $0.84/unit at the end of every month l, starting January 31.
A commodity’s spot price as of December 31 is $46/unit, and storage costs are $0.84/unit at the end of every month l, starting January 31. if the effective monthly interest rate is .9% (compounded monthly, not continuously), what will be the forward price for delivery at the end of August, assuming the commodity is stored?
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
4th edition
978-0133428469, 013342846X, 133428370, 978-0133428377
