Question
Using Spot Future parity find the price of a 2 year futures contract on a commodity that is trading in the Spot market at $
Using Spot Future parity find the price of a 2 year futures contract on a commodity that is trading in the Spot market at $ 5,000.00. The risk free rate is 3%. Use continuous compounding ( i.e. use the natural log e.)
Tha's what professor gives us. No more information. Sorry I really can't do it.
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
