T Suppose that oil forward prices for 1 year, 2 years, and 3 years are $120,...
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T Suppose that oil forward prices for 1 year, 2 years, and 3 years are $120, $98, and $90 per barrel. The 1-year effective annual interest rate is 4.4%, the 2-year interest rate is 4.0%, and the 3-year interest rate is 3.3%. What is the fixed per-barrel price in a 3-year swap that calls for delivery of 2 barrels of oil at the end of the first year, 4 barrels the second year, and 4 barrels the third year? $121.39 $99.42 $95.73 $102.95 ed $91.89 T Suppose that oil forward prices for 1 year, 2 years, and 3 years are $120, $98, and $90 per barrel. The 1-year effective annual interest rate is 4.4%, the 2-year interest rate is 4.0%, and the 3-year interest rate is 3.3%. What is the fixed per-barrel price in a 3-year swap that calls for delivery of 2 barrels of oil at the end of the first year, 4 barrels the second year, and 4 barrels the third year? $121.39 $99.42 $95.73 $102.95 ed $91.89
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