Questions tagged [commodity]

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7
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2answers
244 views

Oil price model calibration with Kalman Filter and MLE in python

I am trying to calibrate a one-factor mean-reverting process in python 3. The process is defined as: \begin{equation} dX = k(\alpha - X)dt + \sigma dW , \end{equation} where $\alpha = \mu - \frac{\...
2
votes
2answers
129 views

Crude Oil futures contract delivery

Today was a historical moment with prices for Crude Oil futures contract failing below 0. My question is, if you are a contract holder - can you just refuse the delivery, given that the contracts are ...
0
votes
1answer
158 views

What happens to farmers' futures contracts if a natural disaster destroys their crops?

Suppose I am a farmer who entered into a futures contract to deliver crops in 6 months. Suppose that a natural disaster destroyed all my crops just before the delivery date. As a result, it will be ...