The fair price of a 6-month futures contract on a commodity is $26.40. If the...
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Finance
The fair price of a 6-month futures contract on a commodity is $26.40. If the one-year storage cost of the underlying commodity is 3.5% and the one-year risk-free rate is 1.7%, which of the following is closest to the spot price of the commodity underlying the futures contract?
A.
$23.97
B.
$25.06
C.
$25.72
D.
$26.08
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