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Part I
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Financial Markets and Products
Financial Markets and Products
Medium
Crude oil has a spot price of $80/barrel, the risk-free rate is 5%, storage costs are 4% per annum, and the convenience yield is 9% per annum (all continuously compounded). The 1-year futures price is closest to:
A
$80.00
B
$83.25
C
$78.41
D
$87.42
Select an answer to continue
Tags
#commodity-futures
#convenience-yield
#storage-costs
#cost-of-carry
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