| 1. | Spot prices can therefore be quite volatile and move independently from forward prices.
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| 2. | The forward price-to-earnings multiple of the portfolio is currently 30.
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| 3. | The forward price is then given by the formula:
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| 4. | The forward price for aluminum rose US $ 11 to US $ 1, 644 an ounce.
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| 5. | Instead, there is a correction to the forward pricing formula given by the convenience yield c.
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| 6. | "The forward prices look good, and many more plants are coming into operation in Calpine's portfolio,"
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| 7. | The depletion of the North Sea oil fields is one explanation for the divergence in forward prices.
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| 8. | Such tactics are no longer profitable because current prices don't command a large premium over forward prices.
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| 9. | Note that when interest rates are deterministic, this implies that forward prices and futures prices are the same.
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| 10. | Metals issues may gain after three-month forward prices of the underlying commodities rose on the London Metal Exchange.
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