The spot price of oil is $80 per barrel and the cost of storing a barrel of

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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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Fundamentals Of Futures And Options Markets

ISBN: 9781292422114

9th Global Edition

Authors: John Hull

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Question Posted: Mar 05, 2024 01:00 AM

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The spot price of oil is $80 per barrel and the cost of storing a barrel of

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Fundamentals Of Futures And Options Markets

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