The forward prices on a barrel of crude oil are $112 and $118 in years one and two, respectively. The interest rates on zero coupon government bonds are 3.0% and 3.5% in years one and two, respectively
What is the likely 2-year swap price on a barrel of crude oil?
A) $112.00
B) $116.60
C) $118.00
D) $120.50
B
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Indicate whether this statement is true or false.
To take advantage of the massive amount of data now available, sophisticated analysis techniques called ________ are becoming a priority for many firms
A) data mining B) prospecting C) cold calling D) data warehousing E) data tallying
The IRR of the project would be ________.
Beam Cable Company is considering investing $450,000 in telecommunications equipment that has an estimated life of four years with no residual value. The cash inflows are as shown below:
A) between 12% and 13%
B) more than 13%
C) less than 10%
D) between 9% and 10%
Which of the following is true of a destination contract containing a "no-arrival, no-sale" clause?
A) The seller is required to bear the expense and risk during transportation. B) The seller is required to replace any goods lost in transit. C) The buyer does not have to pay for destroyed goods. D) The risk of loss passes once the shipping has been arranged.