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Posted: **Sat Nov 27, 2021 5:18 pm**

: Question 1 10 Points Suppose The Spot Price Of Crude Oil Is 68 Barrel The 6 Month Forward Price Is 63 Barrel The 1 (23.99 KiB) Viewed 58 times

Question 1: (10 points) Suppose the spot price of crude oil is $68/barrel. The 6- month forward price is $63/barrel. The storage cost is $2/barrel. The risk-free rate is 8%/year (continuous compounding). Is there an arbitrage opportunity? If yes, please identify your strategy.