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Homework answers / question archive / The spot price of oil is $86 per barrel and the cost of storing a barrel of oil for one year is $4

The spot price of oil is $86 per barrel and the cost of storing a barrel of oil for one year is $4

Finance

The spot price of oil is $86 per barrel and the cost of storing a barrel of oil for one year is $4.7, payable at the end of the year. The risk-free interest rate is 4% per annum (cont. comp.). What is an upper bound for the one-year futures price of oil?

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