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Assume Oat Forward Prices Over the Next 3 Years Are

Question 1

Multiple Choice

Assume oat forward prices over the next 3 years are $2.25,$2.35,and $2.28,respectively.Effective annual interest rates over the same period are 5.2%,5.5%,and 5.8%.What is the ?2-year swap price on a hypothetical "forward swap" that begins at the end of year 1?


A) $2.14
B) $2.32
C) $2.41
D) $2.53

Correct Answer:

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