Question
The spot price for a commodity is $120. The annual storage cost for the commodity in terms of a continuous yield is 4.8%. The appropriate
The spot price for a commodity is $120. The annual storage cost for the commodity in terms of a continuous yield is 4.8%. The appropriate continuously compounded annual risk-free rate is 3.5%. What is the 8-month commodity futures price?
| A. | $127 | |
| B. | $121 | |
| C. | $108 | |
| D. | $119 |
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
3rd Edition
0073382426, 9780073382425
