Multiple Choice
The price of a two-year oil commodity swap is $85. The spot price of oil is $80. If the one-year forward price of oil is $83, what is the best estimate of the two-year forward price of oil? Assume that convenience yields and other costs and benefits of storing oil are zero.
A) $86.00
B) $87.00
C) $88.50
D) $90.00
Correct Answer:
Verified
Correct Answer:
Verified
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