Question
It is now January. The current interest rate is 6.2%. The June futures price for gold is $1548.00, while the December futures price is $1,546.
It is now January. The current interest rate is 6.2%. The June futures price for gold is $1548.00, while the December futures price is $1,546. Assume the June contract expires in exactly 6 months and the December contract expires in exactly 12 months.
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| Calculate the appropriate price for December futures using the parity relationship? | |
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Infrastructure Planning And Finance
Authors: Vicki Elmer, Adam Leigland
1st Edition
0415693187, 978-0415693189
