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If the spot price of gold is $250 per ounce and the risk-free rate of interest is 10 percent per annum, the six -month forward

If the spot price of gold is $250 per ounce and the risk-free rate of interest is 10 percent per annum, the six -month forward price per ounce of gold, assuming semi-annual carry costs of $2.5, should be closest to

$250.00

$262.70

$260.00

$242.00

$275.00

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