The spot price of oil is $80 per barrel and the cost of storing a barrel of
Question:
The spot price of oil is $80 per barrel and the cost of storing a barrel of oil for one year is
$3, payable at the end of the year. The risk-free interest rate is 5% per annum continuously compounded. What is an upper bound for the one-year futures price of oil?
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Related Book For
Fundamentals Of Futures And Options Markets
ISBN: 9781292422114
9th Global Edition
Authors: John Hull
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