Question
A long forward contract on 100 gram gold that was negotiated some time ago and will expire in six months and has a delivery price
A long forward contract on 100 gram gold that was negotiated some time ago and will expire in six months and has a delivery price of 50 kr. The current forward price for six-month forward contract is 55 kr. The six month risk-free interest rate (with continuous compounding) is 10%. Gold has a storage yield of 3%. What is the value of the long forward contract?
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Financial Management In The Sport Industry
Authors: Matthew T Brown, Daniel Rascher, Mark S Nagel, Chad Mcevoy
1st Edition
1934432040, 978-1934432044
