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please help M. M. Rah aman MFIN6690 1. Crude Oil Price The following figure shows the New York Mercantile Exchange WTI futures price. As you

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M. M. Rah aman MFIN6690 1. Crude Oil Price The following figure shows the New York Mercantile Exchange WTI futures price. As you can see from the figure, oil futures price went into negative territory around April 20, 2020. NYME Crude Oil Futures Price (US$) 150 100 8 O -50 1 Jan 2010- 1 Jan 2000- 1 Jan 2020- 1 Jan 2015 1 Jan 2005 date High Low Close Adj Close We discussed in the class that the price of a financial asset CANNOT be negative. If so, how do you justify the negative crude oil price? Can you suggest either a Discounted Cash Flow (DCF) or a Relative Valuation (RV) model that can capture the negative price of oil that we observed in the week of April 20, 2020

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