8. Last year's monthly averages of spot and forward prices in $ for 1 bbl (barrel)...
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8. Last year's monthly averages of spot and forward prices in $ for 1 bbl (barrel) of WTI crude oil is as follows. Spot Forward price lag price 1 2 Jan Feb 61 65 60 62 65 63 66 70 75 Mar 63 Apr 66 65 68 69 71 May 68 70 71 Jun 71 Jul 74 73 72 71 Aug MORENO NEREK 3 4 5 6 7 8 9 10 11 12 69 74 80 86 91 93 94 96 80 83 71 74 76 72 73 73 72 72 70 70 ORK 70 70 70 RRE 70 85 84 77 77 76 75 73 73 72 71 72 71 68 69 66 98 81 80 78 75 98 70 68 66 56 60 57 65 OK 252 63 62 60 65 65 70 70 69 69 68 68 67 66 69 68 67 66 74 73 75 74 75 76 77 75 75 74 73 73 72 The spot price of 60 is the average of prices realized on each day of the last year's Jan. Lag-1 forward price in the row of Jan is the average of Feb forward prices realized on each day of the last year's Jan. Lag-12 forward price in the row of Jan is the average of this year's Jan forward prices realized on each day of the last year's Jan. That is, prices in the row of Jan monthly average prices realized in Jan of the last year. Similarly, the row associated with a month contains prices realized in that month. a) What is the forward price realized in Jan of the last year for Jul of the last year? b) What is the forward price realized in Feb of the last year for Jul of the last year? c) What is the forward price realized in Mar of the last year for Jul of the last year? d) What is the forward price realized in Jun of the last year for Jan of this year? e) What is the forward price realized in Jul of the last year for Jan of this year? f) What is the forward price realized in Aug of the last year for Jan of this year? 8. Last year's monthly averages of spot and forward prices in $ for 1 bbl (barrel) of WTI crude oil is as follows. Spot Forward price lag price 1 2 Jan Feb 61 65 60 62 65 63 66 70 75 Mar 63 Apr 66 65 68 69 71 May 68 70 71 Jun 71 Jul 74 73 72 71 Aug MORENO NEREK 3 4 5 6 7 8 9 10 11 12 69 74 80 86 91 93 94 96 80 83 71 74 76 72 73 73 72 72 70 70 ORK 70 70 70 RRE 70 85 84 77 77 76 75 73 73 72 71 72 71 68 69 66 98 81 80 78 75 98 70 68 66 56 60 57 65 OK 252 63 62 60 65 65 70 70 69 69 68 68 67 66 69 68 67 66 74 73 75 74 75 76 77 75 75 74 73 73 72 The spot price of 60 is the average of prices realized on each day of the last year's Jan. Lag-1 forward price in the row of Jan is the average of Feb forward prices realized on each day of the last year's Jan. Lag-12 forward price in the row of Jan is the average of this year's Jan forward prices realized on each day of the last year's Jan. That is, prices in the row of Jan monthly average prices realized in Jan of the last year. Similarly, the row associated with a month contains prices realized in that month. a) What is the forward price realized in Jan of the last year for Jul of the last year? b) What is the forward price realized in Feb of the last year for Jul of the last year? c) What is the forward price realized in Mar of the last year for Jul of the last year? d) What is the forward price realized in Jun of the last year for Jan of this year? e) What is the forward price realized in Jul of the last year for Jan of this year? f) What is the forward price realized in Aug of the last year for Jan of this year?
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