The current price of palm oil is 12 per gallon the storage, Ask an Expert

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The current price of palm oil is $12 per gallon. The storage costs are $0.36 per gallon per annum payable monthly in advance. Assume that the interest rates are 12% per annum with continuous compounding for all maturities. Show the appropriate equations and then calculate per gallon (a) storage cost, (b) accrued interest, (c) total carrying cost, and (d) the future price of palm oil for delivery in three months.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92425850

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