Finc 5370 quiz 2 - Study guides, Class notes & Summaries

FINC 5370 (Derivatives Risk Parent) – Quiz 2 Chapter 5-8 with Answers – 100 out of 100 Points Download the File for Answers Questions 1. What is the difference between the forward price and the value of a forward contract? 2. The spot price of oil is $80 per barrel and the cost of storing a barrel of oil for one year is $3, payable at the end of the year. The risk-free interest rate is 5% per annum, continuously compounded. What is an upper bound for the one-year futures price of o...