# Feedback for Copper is trading in the spot at the rate of $100 per KG. Sam owns 1Kg of copper and wants to sell it at the end of three months. Copper requires special storage ( warehouse ) arrangements, hence he incur storage cost of $10 at the time of withdrawing copper from the warehouse. Find out the forward rate of 1Kg of copper using the no-arbitrage theory where the risk-free rate is 5%

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Location:Quiz B4C14 Binomial Trees