Consider the following three wheat futures contracts: December 2026 delivery December 2027 delivery December 2028 delivery Currently wheat has no convenience yield, but substantial storage costs. If the three contracts trade at the upper bound of their arbitrage-free trading range, which of the following is true regarding their delivery prices?

The spot price of natural gas is $4.13 per MMBtu, which costs $0.04 per MMBtu to store per month (payable at the start of the month). The risk-free rate has a flat term structure with a rate of 5.30 percent per year for all maturities. What is the highest possible arbitrage-free price for a two-month contract?

An investor opens a short futures position in 5 contracts for platinum at a delivery price of $819 per oz. The size of one futures contract is 50 units. At the end of the first day of trading, the delivery price of the contract settled at $778. On the second day, the delivery price settled at $794. On the third day, the price settled at $812. What is the total gain/loss in their margin account over the three days (Assuming a margin call cannot be triggered)?

The annualized, continuously compounded risk-free rates for U.S. dollars (USD) and French euros (EUR) are 5.50 percent and 3.50 percent, respectively. The spot price of an EUR in USD is 1.10 USD per EUR. If the five-year forward price is 1.25 USD per EUR and required delivery of 1,000,000 EUR, what arbitrage profits (in USD) can we immediately earn? (Enter your answer as a number of USD, rounded to the nearest 0.01 USD)  

Derivative traders, like all traders that are required to post margin, realize their loses daily as their margin accounts are marked-to-market.

The spot price of natural gas is $4.08 per MMBtu, which costs $0.04 per MMBtu to store per month (payable at the start of the month). The risk-free rate has a flat term structure with a rate of 4.90 percent per year for all maturities. What is the highest possible arbitrage-free price for a two-month contract?

Challenge Currently, the futures price for 10-year Treasury note (T-note) with December delivery is . The CME group conversion factor can be calculated with:  

Consider the following three wheat futures contracts: May 2025 delivery May 2026 delivery May 2027 delivery Currently wheat has no convenience yield, but substantial storage costs. If the three contracts trade at the upper bound of their arbitrage-free trading range, which of the following is true regarding their delivery prices?

A derivative trader can replicate the risks and payoffs of a short futures or forward position by:

The nurse begins infusing 1000 mL of lactated ringer’s solution to be started at 0600am. The fluids are set to infuse at 100 mL/hr. What is the completion time of the IV? Record your answer in military time. ________