Suppose that current spot price of brent oil is 82 and nine, Ask an Expert

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problem: Suppose that current spot price of brent oil is $82 and nine month risk free rate of return is 4%. The continuous storage cost of oil is 3 percent per year. Let's suppose also that oil has a convenience yield of 2.5%. Compute the price of a nine month forward contract on a barrel of oil.

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Category:- Basic Finance
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