The spot price for live cattle is 107.25 (cents per lbs) and you determine the following key inputs: risk-free rate is 0.50% per annum, storage cost is 40% per annum, and convenience yield is 35% per annum. All rates are shown on a continuously compounded basis. 

Based on this information calculate what is the expected price for a futures contract of live cattle expiring in 6-month?

Answer rating: 100% (QA)

The expected futures price for a commodity is given by the formula F S x eryT where F ... View the full answer