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NEW QUESTION: 1
Calculate the fair no-arbitrage spot price of oil if the price of a one year forward is $75, the discrete one year interest rates are 6%, and annual storage costs are $4 per barrel paid at the end of the year.
A. $74.53
B. $70.75
C. $66.98
D. $71
Answer: C
Explanation:
Explanation
If $x be the spot price of oil, then in order for the forward price to be $75, the following relationship must hold: ($x + $4/(1.06))*(1 + 6%) = $75. Solving, we get x = $66.98
NEW QUESTION: 2
COL1 is defined as CHAR(05) and contains CHAR('12345'). Which of the following expressions returns the digits 12345 for further calculation?
A. DIGITS(COL1)
B. DEC(COL1)
C. PACK(COL1)
D. HEX(COL1)
Answer: B
NEW QUESTION: 3
HOTSPOT
You need to design the acquisition strategy for Margie's Travel.
What should you do? To answer, select the appropriate option for each action in the answer area.
Answer:
Explanation: