Question
All of the following factors directly determine whether storage arbitrage is possible except: A. Spot price of the commodity B. Futures price of the commodity
All of the following factors directly determine whether storage arbitrage is possible except:
| A. | Spot price of the commodity | |
| B. | Futures price of the commodity | |
| C. | Storage and transportation costs | |
| D. | Projected GDP growth |
If the spot price of WTI crude oil is $100/bbl, the futures price of WTI crude oil for delivery in two months is $110/bbl and the cost of carry of $5.00/bbl per month, is storage arbitrage a profitable strategy? Why or why not?
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Finance For Freelancers Financial Intelligence
Authors: Andrew Holmes
1st Edition
1408101165, 978-1408101162
