Question
Gold is currently trading at $1,645.50 per ounce with a carrying cost of $1.25 per ounce per month for storage and insurance. Given a current
Gold is currently trading at $1,645.50 per ounce with a carrying cost of $1.25 per ounce per month for storage and insurance. Given a current market price of $1,693.97 per ounce for a four-month futures contract, what is the potential carry trade profit per ounce if the interest rate is 3%?
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
6th edition
1259864235, 1259864230, 1260159547, 126015954X, 978-1259864230
