Question: Suppose that a commoditys respective forward prices for 1 year and 2 years are $150 and $158. The 1-year effective annual interest rate is 5.9%,

Suppose that a commoditys respective forward prices for 1 year and 2 years are $150 and $158. The 1-year effective annual interest rate is 5.9%, and the 2-year interest rate is 6.6%. You will pay a fixed rate of $153.85906 in a 2-year swap and receive the floating rate. At the time you enter the swap contract, its value to you is...

	a.	$0.0084
	b.	$0.0084
	c.	$0.0051
	d.	$0.0051
	e.	$0.0000

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