Returns the upper bound of the value for a futures contact on an investment commodity when the storage cost as a proportion of the commodity price are known.
public double ConsumptionCommodityWithProportionateCostsWithExplicitTime( doublecommodityPrice, doublestorageCosts, doubleriskFree, doubletimeToExpiry );
Parameters
commodityPrice
The price of the underlying commodity.
storageCosts
The storage costs as a proportion of the commodity price during the life of the contract.
riskFree
Continuously compounded risk free interest rate given in decimal format (i.e. 1 percent = 0.01).
timeToExpiry
The time period (in years) until the future contract expires.
Return Value
The upper bound on the value of the futures contract.