Question: Suppose that a commoditys forward prices for 1 year, 2 years, and 3 years are $74, $65, and $59, respectively. The 1-year effective annual interest

  1. Suppose that a commoditys forward prices for 1 year, 2 years, and 3 years are $74, $65, and $59, respectively. The 1-year effective annual interest rate is 5.1%, the 2-year interest rate is 4.7%, and the 3-year interest rate is 4.1%. What is the 3-year swap price?

a. 60.67

b. 66.18

c. 57.11

d. 74.19

e. 182.00

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