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Select all correct options Suppose both forward and futures contracts are available for a particular commodity. The average spot price of the commodity for various
Select all correct options Suppose both forward and futures contracts are available for a particular commodity. The average spot price of the commodity for various interest rates are given below: Average spot price Interest rate 1200 8% 1280 7.5% 1150 9% 1125 10% 1360 6.8% Which of the following can be the 3-month futures and forward price for this particular commodity on a given day? [3marks] Select all correct options Suppose both forward and futures contracts are available for a particular commodity. The average spot price of the commodity for various interest rates are given below: Average spot price Interest rate 1200 8% 1280 7.5% 1150 9% 1125 10% 1360 6.8% Which of the following can be the 3-month futures and forward price for this particular commodity on a given day? [3marks]
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