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What is the six-month forward price

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Reference no: EM132885080

Question - A metal costs $0.10 per month to store (which is paid upfront) but gives a convenience yield worth $0.12 per month (which is received at maturity). If the metal's spot price is $150 per pound and the continuously compounded interest rate is 5.5% per annum, what is the six-month forward price?

a. $150.98

b. $151.37

c. $152.48

d. $154.08

e. $153.69

Reference no: EM132885080

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