An analyst gathers the following information:
- The current spot price of crude oil is $120 per barrel.
- The risk-free rate is 3% with annual compounding.
- A futures contract has 182 days until settlement.
- The storage cost is $5 per barrel, payable at the end of the futures contract.
Based on 365 days per year, the futures price per barrel of crude oil is closest to: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
Chartered Financial Analyst Level 1
Get started today
Ultimate access to all questions.
Comments
Loading comments...
An analyst gathers the following information:
The current spot price of crude oil is $120 per barrel.
The risk-free rate is 3% with annual compounding.
A futures contract has 182 days until settlement.
The storage cost is $5 per barrel, payable at the end of the futures contract.
Based on 365 days per year, the futures price per barrel of crude oil is closest to: