Question
You buy a one year futures contract on a commodity today for $48. The risk free rate is 8% per annum. Six months later, the
You buy a one year futures contract on a commodity today for $48. The risk free rate is 8% per annum. Six months later, the same contract is priced at $50. If the risk free rate is still 8%, what is the value of the futures contract?
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Fundamentals of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
3rd edition
1118845897, 978-1118845899
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