Question
A speculator buys a three month forward contract on 1000 barrels of ail at $65 a barrel. One month later, the forward price is $63.50,
A speculator buys a three month forward contract on 1000 barrels of ail at $65 a barrel. One month later, the forward price is $63.50, the spot price is $63. Risk free rate is 5% p.a. c.c. What is the value of the forward contract?
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Financial Mathematics
Authors: Cacildo Marques
1st Edition
8741574710, 979-8741574713
