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COMIND Index Is Computed by Averaging Commodity Prices

Question 1

Multiple Choice

COMIND index is computed by averaging commodity prices.Compute the six-month forward price for this index if the spot price is 1,000 and the continuously compounded annual rates for various costs and benefits are 5 percent for the interest rate,2 percent for the dividend yield,3 percent for the storage cost,and 1 percent for the convenience yield.


A) $1,021.05
B) $1,025.32
C) $1,030.45
D) $1,040.81
E) None of these answers are correct.

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