The spot price of oil is 110 per barrel and the cost of, Ask an Expert

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The spot price of oil is $110 per barrel and the cost of storing a barrel of oil for one year is $3.25, payable at the end of the year. The risk-free interest rate is 6% per annum, continuously compounded. What is an upper bound for the one-year futures price of oil?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91946671

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