Question $5$stion $5$

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Homework due Aug $1,202402$:$12$ CDT Question $5$

$\frac{0\mathrm{.}0}{15\mathrm{.}0}$ points $($graded$)$

Suppose the $1-$month and $3-$month future prices for oil are $F_1=$$$36\mathrm{.}4$ and $F_3=$$$35\mathrm{.}3$ per barrel. Assume the spot interest rates are the same for the first three months and equal to $r=1\mathrm{.}2\%($annualized$,$ continuously compounded$).$

What is the net convenience yield on storing oil implied by the market data?

$\%$

Note that in Excel, to get the natural logarithm of a given number you should use LN$(.).$ Using LOG$(.)$ will return a wrong number.

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