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Explain with reasons the following statements ( 6 Marks) a) The future price of gold can be calculated from its spot price and other observable

Explain with reasons the following statements( 6 Marks)

a) The future price of gold can be calculated from its spot price and other observable variables. This is not the case with copper.

b) Foreign currency can be treated as an asset providing known yield

c). Perfect hedge is not always possible.

c) Barrier options are traded only in OTC markets

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