Suppose that oil is currently trading at $38 a barrel. Assume that the interest rate is 3%

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Suppose that oil is currently trading at $38 a barrel. Assume that the interest rate is 3% for all maturities and that oil has a convenience yield of c. If there are no other carry costs, for what values of c can the oil market be in backwardation?

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Derivatives Principles And Practice

ISBN: 9780078034732

2nd Edition

Authors: Rangarajan Sundaram

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Question Posted: Jan 10, 2024 01:00 AM

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Suppose that oil is currently trading at $38 a barrel. Assume that the interest rate is 3%

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Derivatives Principles And Practice

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