Question
A commoditys spot price as of December 31 is $48/unit, and storage costs are $0.85/unit at the end of every month, starting January 31. If
A commoditys spot price as of December 31 is $48/unit, and storage costs are $0.85/unit at the end of every month, starting January 31. If the effective monthly interest rate is 0.9% (compounded monthly, not continuously), what will be the forward price for delivery at the end of August, assuming the commodity is stored?
| a. | $55.02 | |
| b. | $58.75 | |
| c. | $58.37 | |
| d. | $58.87 | |
| e. | $58.58 |
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Take The Trade A Floor Trade
Authors: Tony Wilson
1st Edition
979-8218195458
