IMG bought the academy in 1987, and it now covers more than 500 acres. Football began in 2013 as part of a $197 million campus expansion. Games are played in a 5,000-seat stadium outfitted with suites and a jumbo video screen. Digital screens depict each playerâs name and face on his locker.
Suppose the spot price of wheat is 550 cents per bushel, the six-month forward price is 600, the riskless rate of interest is 5% p.a., and the cost of carry is 6% p.a. To execute an arbitrage, you borrow money, buy a bushel of wheat, pay to store it, and sell it forward.uppose the spot price of wheat is 550 cents per bushel, the six-month forward price is 600, the riskless rate of interest is 5% p.a., and the cost of carry is 6% p.a. To execute an arbitrage, you borrow money, buy a bushel of wheat, pay to store it, and sell it forward.
A single-payment swap is the same thing as a cash-settled forward contract. An example of a commodity swap An industrial producer, IP Inc., needs to buy 100,000 barrels of oil 1 year from today and 2 years from today. The forward prices for deliver in 1 year and 2 years are $20 and $21/barrel. The 1- and 2-year zero-coupon bond yields are 6% and 6.5%. An example of a commodity swap IP can guarantee the cost of buying oil for the next 2 years by entering into long forward contracts for 100,000 barrels in each of the next 2 years.