20. The following table shows 2009 gold futures prices for varying contract lengths. Gold is predominantly an investment good, not an industrial commodity. Investors hold gold because it diversifies their portfolios and because they hope its price will rise. They do not hold it for its convenience yield.

Calculate the interest rate faced by traders in gold futures for each of the contract lengths shown below. The spot price is $915.50 per ounce.

Contract Length (months)

3 6 9 Futures price $917.90 $920.85 $923.30