User Account

All Pages

It costs 1 to store a barrel of oil for one year if oil has

Assignment Help Finance Basics
Reference no: EM13569571

The price of oil is $100 per barrel. Oil prices are expected to grow at 4% per year. The one-year risk-free rate of interest is 2% in simple terms. It costs $1 to store a barrel of oil for one year. If oil has no costs or benefits of carry, what is the theoretical one-year forward price of oil?

Reference no: EM13569571

Questions Cloud

Assume you hold a well-balanced portfolio of common stocks : assume you hold a well-balanced portfolio of common stocks. under what conditions might you want to use a stock-index
Given the following scenario on what date would you : given the following scenario on what date would you recognize revenue if preparing financials under u.s. gaap? would
Madden electric began operations in 2010 and provides a one : madden electric began operations in 2010 and provides a one year warranty on the products it sells. they estimate that
Define the idea of a just war can any war be just in the : read the article a just or holy war of independence? by john d. carlson and answer the following questionsdefine the
It costs 1 to store a barrel of oil for one year if oil has : the price of oil is 100 per barrel. oil prices are expected to grow at 4 per year. the one-year risk-free rate of
You expect the following cash flows from a new business you : you expect the following cash flows from a new businessyear cash flow1 5000.002 8000.003 1200.004 1400.00you can borrow
Find a journal article online about absorption andor : find a journal article online about absorption andor variable costing. in the subject line of your post include the
You know that the firms 12 year maturity 975 percent : you are analyzing the after tax cost of debt for a firm. you know that the firms 12 year maturity 9.75 percent
Company a and company b are identical except that company : company a and company b are identical except that company as costs are mostly variable whereas company bs costs are

Reviews

Write a Review

Finance Basics Questions & Answers

  One of the advantages to a corporate hedger of futures

On November 19, 1992, three-month June, 1993, put options on Eurodollars with a strike price of 9600 traded for 0.19 points.  A person who bought these contracts:

  If a new technologist aide is hired determine the patient

jasmine gonzales administrative director of small imaging center has been asked by the practice members to see if its

  A bank could set a cap and a floor on the interest rate it

A bank could set a cap and a floor on the interest rate it receives from a commercial loan by:

  How much will tammie monthly payment be

Tammie wants to buy a scooter that costs $3500. Her mom will loan her the money at 5% APR as long as she makes monthly payments over the next 3 years. How much will Tammie's monthly payment be?

  What amount will be in a bank account three years from now

What amount will be in a bank account three years from now if $5,000 is invested each year for four years with the first investment to be made today?

  If it is the companys policy to always maintain a constant

suppose you know that a companys stock currently sells for 54 per share and the required return on the stock is 9

  Mergers and team building

You've just been part of merger. You've each been chosen to head up your department and merge the two groups into a self-directed work team.

  Company structure and customer response times

Suggest a modification to the structure which will remedy the impact of structure on responsiveness.

  What effective annual interest rate is the bank charging you

1st Bank offers you a car loan at an annual interest rate of 10% compounded monthly. What effective annual interest rate is the bank charging you?

  how might the bank be able to involve its own customers

ow might the bank be able to involve its own customers in designing its web site and pricing its Internet service package?

  What is the present value of 15500 to be received 12 years

what is the present value of 15500 to be received 12 years from today? assume a discount rate of 7.5 compounded

  What is the npv of the new production line

The tax rate is 35 percent, the opportunity cost of capital is 10 percent, and the annual rate of inflation is 4.90 percent. What is the NPV of the new production line?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd