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Exercise 4 (choose the closest to what you find) storage and insurance costs on gold are $10.19 per month per ounce and have just been
Exercise 4 (choose the closest to what you find) storage and insurance costs on gold are $10.19 per month per ounce and have just been paid. The spot price of gold is $1812.58 per ounce. Calculate the forward price of a forward ontract on gold that matures in 5 months. The risk-free rate is 4.61%. (10 pts) (A) $1602.75 (B) $2148.76 [C) $1898.73 (D) $1418.75
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