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Suppose that the current crude oil price is $2000 per barrel. The required costs for storing one barrel of oil for one year are $10.
Suppose that the current crude oil price is $2000 per barrel. The required costs for storing one barrel of oil for one year are $10. Some airline company wishes to buy crude oils 5 years at a predetermined price from 5 years now. The interest rate is 2%.
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3 the future spot price of crude oil in five years can be calculated as Future Spot Price Current Sp...
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
