Assume that oil forward prices for 1 year, 2 years, and 3 years are $18, $19, and $20.
ssume that oil forward prices for 1 year, 2 years, and 3 years are $18, $19, and $20. The 1-year effective annual interest rate is 6.5%, the 2-year interest rate is 7.0%, and the 3-year interest rate is 7.5%.a. What Read More …