Oil is trading at $55/barrel. Interest rates are flat at 8%. You enter into a contract to
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Question:
Oil is trading at $55/barrel. Interest rates are flat at 8%. You enter into a contract to deliver 1,000 barrels of oil in 2 months and 1,000 barrels of oil in 3 months, both at a delivery price D.
What is the arbitrage-free value of D?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: