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igation Question 3 Not yet answered Marked out of 30.00 P Flag question 4 Suppose that with my student A, I promise to deliver him
igation Question 3 Not yet answered Marked out of 30.00 P Flag question 4 Suppose that with my student A, I promise to deliver him 100 barrels of crude WTI oil in two years. Assuming the price of 1 barrel today is 26US$ and the yearly interest rate on a bond is 0.3%. (a) How much our forward contract should be agreed upon? (b) Suppose that instead of doing the forward contract with me, my student A decides to enter a futures contract in the Futures Exchange. Should he assume the price of the futures contract is the same as of the forward? c) What would be the price of the futures contract if the interest rates are uncorrelated with the oil prices? Paragraph B 7 Activate Windows Go to Settings to activate Chip
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