Question 1. [6 points] You observe in the oil market the following prices: Date WTI Oil Spot Price WTI Oil Futures Price 13/09/2019 54.76 54.59 16/09/2019 63.1 62.02 If the futures contract expires after 3 months (on 22/12/2019) and the continuously compounded risk-free rate is 1.5682%, estimate what will be the convenience yield for oil on each date. What do you observe and how do you explain this observed difference (search the news on both dates for hints)? Question 1. [6 points] You observe in the oil market the following prices: Date WTI Oil Spot Price WTI Oil Futures Price 13/09/2019 54.76 54.59 16/09/2019 63.1 62.02 If the futures contract expires after 3 months (on 22/12/2019) and the continuously compounded risk-free rate is 1.5682%, estimate what will be the convenience yield for oil on each date. What do you observe and how do you explain this observed difference (search the news on both dates for hints)