What is the five-month forward price for alloyum

Reference no: EM131457980

Question: Alloyum costs $0.10 per month to store (which is paid upfront) but gives a convenience yield of $0.12 per month (which is received on the maturity date). If its spot price S is $200 per ounce and the continuously compounded interest rate r is 5 percent per year, what is the five-month forward price for Alloyum?

Reference no: EM131457980

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