The current price of oil is 3200 per barrel forward prices, Ask an Expert

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The current price of oil is $32.00 per barrel. Forward prices for 3, 6, 9, and 12 months are $31.37, $30.75, $30.14 and $29.54. Assuming 2% compounded annual risk-free rate, what is annualized lease rate for each maturity? Is this an example of contango or backwardation?

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Financial Management, Finance

Category:- Financial Management
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