What is a fair fixed price for the swap, Finance Basics

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What is a fair fixed price for the swap

Problem

Consider a one-year commodity swap with semiannual payments. The current spot price is $50 and the six-month and one-year forward prices are both $60. The riskless interest rate is 9.53% (compounded continuously). What is a fair "fixed price" for the swap?

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Finance Basics: What is a fair fixed price for the swap

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Finance Basics: What is a fair fixed price for the swap

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