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QUESTION 4: An investor wants to buy 100 oz gold at 400 per ounce in 6 months' time by buying a futures contract. Assume that

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QUESTION 4: An investor wants to buy 100 oz gold at 400 per ounce in 6 months' time by buying a futures contract. Assume that the price of gold increases to $440 per ounce in 6 months. Using the futures contract, show the final cost of the gold to the investor. QUESTION 5: Use the information in Question 4. Now assume that the price of gold falls to $360 per ounce in 6 months. Using the futures contract, show the final cost of the gold to the investor. QUESTION 6: I An investor wants to buy 100 oz gold at 400 per ounce in 6 months' time by buying an option contract. Assume that the price of gold increases to $440 per ounce in 6 months. Using the option contract, show the final cost of the gold to the investor. QUESTION 7: Use the information in Question 6. Now assume that the price of gold falls to $350 per ounce in 6 months. 1. Using the option contract, show the final cost of the gold to the investor. 2. Compare the use of a futures contract with the use of an options contract

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