Suppose the spot price of palm oil is MYR 2,000. The nominal risk-free interest in Malaysia is

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Suppose the spot price of palm oil is MYR 2,000. The nominal risk-free interest in Malaysia is 3% per quarter and 3.60% per year.

What is the 3-month forward price?

What is the 12-month forward price?

If a palm oil producer wants to lock in the price so that he can sell the palm oil in 3 months, what price can the producer lock in?

What about if he wants to sell the palm oil in 9 months?

A million-dollar face value 90-day commercial paper has a discount yield of 3%. What is its fair value and the effective annual rate of return?

Related Book For answer-question

Advanced Accounting

ISBN: 978-0077431808

10th edition

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

See More Books

Posted Date: Jun 12, 2023 06:08 AM

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Suppose the spot price of palm oil is MYR 2,000. The nominal risk-free interest in Malaysia is

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1 Calculate the forward prices and lockedin prices Spot price of palm oil MYR 2000 Nominal riskfree ... View the full answer

Advanced Accounting

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