Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. today is 15 october and the spot price for crude o

Today is 15 October and the spot price for crude oil quoted on the New...

70.2K

Verified Solution

Question

Accounting

Today is 15 October and the spot price for crude oil quoted on the New York Mercantile Exchange (NYMEX) is USD 70.40 and the price for the mid-January futures expiration contract is USD 68.75, a period of 91 days. The USD continuously compounded risk-free interest rate for the 3-months is 3.00 per cent per year. What is the implied convenience yield (as an annualised rate) on the contract if crude oil storage costs (continuously compounded) are 1 per cent per year?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A moving neutron collides with a singly ionized stationary helium atom that is in ground...

Physics
Q

You have been recording how many miles you get per tank of gas, and you have found...

Statistics
Q

In a Union-Management negotiation, the following are the annual percentages of wage increases for Union for...

Statistics
Q

The number of chocolate chips in an​ 18-ounce bag of chocolate chip cookies is approximately normally...

Statistics
Q

*Why was carbon chosen as the atomic backbone of life? *Define a functional group and explain their...

Medical Sciences
Q

write a half-page paper, How did the work of Mary Leakey contribute to our knowledge of...

Psychology
Q

Discuss Merton’s Anomie Theory. Include in your discussion the five social adaptations Merton highlights

Psychology
Q

resistance R of the circuit shown in Fig if the resistances are equal to R...

Physics
Q

19 Five hundred dollars was invested in an account earning continuously compounded interest If the...

Basic Math
Q

Let g x 2 3x 4 x 1 x 3 be a polynomial function Name...

Algebra
Q

Required information (The fotlowing information applies to the questions displayed below.j...

Accounting
Q

Question

Accounting