1. Select 2 assets (stocks, commodities, agricultural products, etc.) with futures traded in the Chicago Mercantile Exchange.

2. Find the spot price of the assets and the risk-free rate from Google or Bloomberg.

3. Using the futures prices of 3 different maturities, determine the aggregate of [storage cost – convenience yield] for each maturity. Use the Cost-of-Carry Model.

4. Your HW should include a table like this for each of 2 assets:

Crude oil (Your asset 1)

Spot price today: $70.50

Risk-free rate today: 1.0%

[Storage cost – Convenience Yield]

Oct 2021

(Sample Maturity 1)

Nov 2021

(Sample Maturity 2)

Dec 2021

(Sample Maturity 3)

5. Now, using 3 maturities you acquired above, estimate the price of a futures contract with a different maturity. Is it similar to the corresponding futures market price or not? If not, write down some of the possible reasons why the prices differ. (Since you have 2 assets, you will do this 2 times.)