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(1 point) The current price of gold is $ 412 per ounce. The storage cost is $ 0.5 per ounce per quarter, payable quarterly in
(1 point) The current price of gold is $ 412 per ounce. The storage cost is $ 0.5 per ounce per quarter, payable quarterly in advance. Assuming a constant interest rate of 9 percent, compounded quarterly, what is the theoretical forward price of gold for delivery in 9 months? Hint: F = 0.m + Zk=0 dk,M) S = 412 M = 3 d(0, M) = 1/(1+.016875)^4 d(1, M) = 3/(1+.016875)^3 d(2, M) = 78.86 c(k) = .5 F= 451.8503 (1 point) The current price of gold is $ 412 per ounce. The storage cost is $ 0.5 per ounce per quarter, payable quarterly in advance. Assuming a constant interest rate of 9 percent, compounded quarterly, what is the theoretical forward price of gold for delivery in 9 months? Hint: F = 0.m + Zk=0 dk,M) S = 412 M = 3 d(0, M) = 1/(1+.016875)^4 d(1, M) = 3/(1+.016875)^3 d(2, M) = 78.86 c(k) = .5 F= 451.8503
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