Question
Suppose the current spot price of oil is $68.75/bbl. The price of a one-year forward contract on oil is $72.50/bbl. The present value of the
Suppose the current spot price of oil is $68.75/bbl. The price of a one-year forward contract on oil is $72.50/bbl. The present value of the cost of storing oil for one year is $1.25/bbl. The riskless interest rate is 9.53% (annualized and continuously compounded). Given this information, what is the convenience yield?
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The Oxford Handbook Of Entrepreneurial Finance
Authors: Douglas Cumming
1st Edition
0195391241, 978-0195391244
