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Assume spot price on crude oil is $55 as of October14, 2016. Futures prices are the following. Calculate the convenience yield for November, December, June
Assume spot price on crude oil is $55 as of October14, 2016. Futures prices are the following. Calculate the convenience yield for November, December, June and July, given the risk free rates above
1. Assume spot price on crude oil is $55 as of October14, 2016. Futures prices are the following. Calculate the convenience yield for November, December, June and July, given the risk free rates above Futures price Risk free rates 0.0405 Maturity November December June (2017) July (2017) 59.4 0.0534 62.76 0.0574 63.79 0.0567 Table 1: Futures prices per barrelStep by Step Solution
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