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elf_fu elf_fu
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7 years ago
Assume oil prices rise dramatically and the spot price of oil is $230 per barrel and the 3-year forward price is $245. Annualized 1-year, 2-year, and 3 year interest rates are 4.2%, 4.4%, and 4.6%, respectively. For a commodity-linked note to sell at par, what is the annual coupon?
A) $6.00
B) $16.00
C) $26.00
D) $36.00
Textbook 
Derivatives Markets

Derivatives Markets


Edition: 3rd
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phuongha2892phuongha2892
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7 years ago
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elf_fu Author
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7 years ago
Thank you phuongha2892
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