Question
A one-year long futures contract on crude oil is entered into when the spot price is $36/bbl. and the risk-free rate of interest is 3%
A one-year long futures contract on crude oil is entered into when the spot price is $36/bbl. and the risk-free rate of interest is 3% per annum with continuous compounding. The cost to store a barrel of oil is $3.23/bbl. per year, payable at the end of the year. Please assume there is no convenience yield. What is the futures price?
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Fundamentals Of Healthcare Finance
Authors: Paula H. Song, Kristin L. Reiter
4th Edition
1640553223, 978-1640553224
