The spot price of an asset x is 20 per unit the funding, Ask an Expert

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The spot price of an asset X is $20 per unit. The funding rate is 4% per year and the storage cost plus other costs amount to 5% per year.

A) What is the 9-month forward price for Asset X?

B) What is the forward price after 3 months when the spot price went up by $10? Assume carry cost remains the same.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92779070

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