[question removed by moderator]
It does not give you the risk free rate. Then the current future price is unknown and the value of the contract is unknown. How to know which party is bearing the credit risk?
[question removed by moderator]
It does not give you the risk free rate. Then the current future price is unknown and the value of the contract is unknown. How to know which party is bearing the credit risk?
Don’t overthink this. Right now they’re contracted to pay an above-market rate, so their counterparty bears the credit risk.