Question
Lex Luther is in a conflict with our beloved Superman. He needs to secure a stockpile of Kryptonite, whichis $10 per gram in the spot
Lex Luther is in a conflict with our beloved Superman. He needs to secure a stockpile of Kryptonite, whichis $10 per gram in the spot market. It will cost 2% of its value to store a gram for one year. The annual interest rate is 7%.
Suppose you are thinking of going long 1 forward contract of Kryptonite with 1.5years in maturity. What is the forward price?
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Production And Operations Analysis
Authors: Steven Nahmias, Tava Lennon Olsen
7th Edition
1478623063, 9781478623069
