gargi.adhikari
Active Member
In Reference to R20.P1.T3.FIN_PRODS_McDonald_Ch6_Topic: Arbitrage Transaction in Commodity Forwards
In the example illustrated below, Expected Spot Price E(St) = (S0). e ^ ( Expected Growth Rate)
But Isn't Expected Spot Price E(St) = (S0). e ^ (Commodity Discount Rate) ...?
Much gratitude for any insights on this.
In the example illustrated below, Expected Spot Price E(St) = (S0). e ^ ( Expected Growth Rate)
But Isn't Expected Spot Price E(St) = (S0). e ^ (Commodity Discount Rate) ...?
Much gratitude for any insights on this.