Suppose the current spot price of oil is 6875bbl what is, Financial Management

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Suppose the current spot price of oil is 6875bbl what is

Suppose the current spot price of oil is $68.75/bbl. The price of a one-year forward contract on oil is $72.50/bbl. The present value of the cost of storing oil for one year is $1.25/bbl. The riskless interest rate is 9.53% (annualized and continuously compounded). Given this information, what is the convenience yield?

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Financial Management: Suppose the current spot price of oil is 6875bbl what is

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