Theoretical Futures Pricing Calculation

Consider a futures contract for the delivery of a commodity. Assume that the current spot price of the commodity is $50, the risk-free rate is 5%, and the time to maturity of the futures contract is 1 year. According to the no-arbitrage principle, what should be the theoretical price of the futures contract at maturity?

To find the theoretical futures price, use the formula: F = S * e^(rT), where:

• F = theoretical futures price
• S = current spot price
• r = risk-free interest rate
• T = time to maturity in years