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  3. suppose that the current price of oil is $ 90 per

Suppose that the current price of oil is $ 90 per bbl. Suppose it costs...

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Accounting

Suppose that the current price of oil is $ 90 per bbl. Suppose it costs $ 0.5 per bbl per month to store oil (payable monthly in advance). Suppose also that the term structure is flat with a continuously compounded rate of interest of 3 % for all maturities.

Calculate the forward price of oil for delivery in 3 months.

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