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Please provide the current spot and May futures prices of oil and natural gas. Please include the date on which you recorded these prices. Please
- Please provide the current spot and May futures prices of oil and natural gas. Please include the date on which you recorded these prices.
- Please assume the cost to store a barrel of oil is $1.00 per month. Using the current spot price, and assuming that interest rates are 1.00% p.a., is the oil future priced accurately in the market? If the prices are out of line, please provide an estimate of the convenience yield y. What does this tell you about the current state of the oil market?
- Please assume the cost to store 10,000 million BTU of natural gas is $0.05 per month. Using the current spot price, and assuming that interest rates are 1.00% p.a., is the natural gas future priced accurately in the market? If the prices are out of line, please provide an estimate of the convenience yield y. What does this tell you about the current state of the natural gas market?
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Fundamentals Of Corporate Finance
Authors: David W Blackwell, Robert Parrino, David S Kidwell
1st Edition
0471270563, 9780471270560
