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Suppose that oil is currently trading at $50 a barrel. Assume that the interest rate is 3% for all maturities and that oil can be
Suppose that oil is currently trading at $50 a barrel. Assume that the interest rate is 3% for all maturities and that oil can be leased out at 5%. Which of the following is false based on the above information? O The price of a one-year oil futures contract should not be above $52. The price of a six-month oil futures contract should not be below $48. O The price of a one-year oil futures contract should not be below $47. The price of a six-month oil futures contract should not be above $50. Question 4 1 pts Which of the following statements is false about cost of carry for a futures contract? Storage cost is part of cost of carry O Financing cost is part of cost of carry O Dividend yield is part of cost of carry o Convenience yield is part of cost of carry
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