The risk-free interest rate is 5 per annum continuously


The spot price of oil is $80 per barrel and the cost of storing a barrel of oil for one year is $3, payable at the end of the year.

The risk-free interest rate is 5% per annum continuously compounded. What is an upper bound for the one-year futures price of oil?

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Financial Management: The risk-free interest rate is 5 per annum continuously
Reference No:- TGS01629921

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