Question Question If someone can help me with my assignment I will really appreciate it I know the right answer but I don't know how to get it i need explanation THANKS Questions The price of oil is $48 34 per barrel and the interest rate is 1 (a) What is the futures price for a contract with 12 months until maturity (Ans 48 83) (b) If the actual futures price for the DEC 2016 contract is $47 98, what type of trade involving oil and oil futures would be profitable

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Question: Question: Question:If someone can help me with my assignment I will really appreciate it. I know the right answer but I don't know how to

Question:Question:If someone can help me with my assignment I will really appreciate it. I know the right answer but I don't know how to get it; i need explanation.THANKS!!

Questions

The price of oil is $48.34 per barrel and the interest rate is 1%.

(a) What is the futures price for a contract with 12 months until maturity?(Ans:48.83)

(b) If the actual futures price for the DEC 2016 contract is $47.98, what type of trade involving oil and oil futures would be profitable?

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