Question
Problem 6. Suppose the one-year gold lease rate is 1.5% and the one-year risk-free rate is 5.0%. Both rates are compounded annually. Calculate the maximum
Problem 6. Suppose the one-year gold lease rate is 1.5% and the one-year risk-free rate is 5.0%. Both rates are compounded annually. Calculate the maximum one-year forward price Goldman Sachs should quote for gold when the spot price is $1,200.
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Financial Markets And Institutions
Authors: Jeff Madura
8th Edition
0324568215, 978-0324568219
