Question
You have started trading in the commodity markets and are therefore investigating the possibilities of making a profit. At present, the spot price for copper
You have started trading in the commodity markets and are therefore investigating the possibilities of making a profit. At present, the spot price for copper is SEK 131.30 per kilo, at the same time as it is also traded on a semester in one year and then at a semester price of SEK 142.94 per kilo. The cost for storage for one year is 7.33% of the spot price and the risk-free interest rate is 2.67%. Calculate how much arbitrage profit you can make per semester at the end of the term (if it is not possible to make arbitrage profit then the arbitrage profit to 0). Round your answer to 2 decimal places.
How do you calculate it right so the answer becomes 1,49
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