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The current price of Commodity X in the spot market is 42.47.ForwardcontractsfordeliveryofCommodityXinoneyeararetradingatapriceof42.47. Forward contracts for delivery of Commodity X in one year are trading at a price of 42.47.ForwardcontractsfordeliveryofCommodityXinoneyeararetradingatapriceof43.11. If the current annually compounded annual risk-free interest rate is 7.0%, calculate the implicit lease rate.
A
1.5%
B
2.0%
C
2.5%
D
3.0%
E
3.5%
F
4.0%
