Question: Considering discrete costs and returns and using continuous compounding, determine the 1-year forward price of commodity A when the spot price is 100, the present
Considering discrete costs and returns and using continuous compounding, determine the 1-year forward price of commodity A when the spot price is 100, the present worth of carry costs is 10, the present worth of returns of the carry is 5 and the risk free rate is 5%.
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