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Describe in your own words what is the relation between the Forward price of oil and...

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Finance

Describe in your own words what is the relation between theForward price of oil and the cost of storage. Besides providing thebasic relation (increasing, decreasing, independent), pleaseprovide the economic reasoning. You are greatly encouraged toprovide any graphical representation that might help convey theidea. Maximum 200 words. Please write as clear as possible.

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4.0 Ratings (537 Votes)
the forward price of a commodity is decided on the assumption ofzero arbitrage principle the principle stand true for oil pricingas well The forward price of a commodity is    See Answer
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