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You are writing a 9-month forward contract on cocoa. Spot prices for the commodities as of 12/9/2020 are given in a table below. If risk-free
You are writing a 9-month forward contract on cocoa. Spot prices for the commodities as of 12/9/2020 are given in a table below. If risk-free rate is 1.0% what delivery price should you write in the forward contract?
Underlying asset | Sport price | unit |
Corn | $ 423.50 | USD/bu. |
Cocoa | $ 2,549.00 | USD/MT |
Cotton | $ 73.05 | USD/lb |
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