On May 20, 2020 , an investor entered into a three-month long forward contract on an investment commodity X. The price of the commodity on May 20, 2020 is $40. This commodity provides income at a rate of 1.3% with continuous compounding and requires storage costs at a rate of 0.8% with continuous compounding. The risk-free rate of interest is 6% per year with semiannual compounding.
Get Answers For Free
Most questions answered within 1 hours.