Question: Suppose that a commoditys forward prices for 1 year, 2 years, and 3 years are $40, $43, and $51. The 1-year effective annual interest rate

Suppose that a commoditys forward prices for 1 year, 2 years, and 3 years are $40, $43, and $51. The 1-year effective annual interest rate is 6.3%, the 2-year interest rate is 6.6%, and the 3-year interest rate is 7.0%. What is the price of a 2-year swap beginning in 1 year? (The first swap settlement will be in 2 years and the second settlement in 3 years.)

	a.	$39.74
	b.	$44.41
	c.	$79.47
	d.	$46.85
	e.	$56.53

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