Question 4

Make use of the table below and answer the following question:

/ Bearings Bank facilitates a commodity swap between a mine and a jeweller. The bank offers the mine a fixed price of USD 1 250 per ounce of gold for the next 2 years, payable on the 28th of every month in exchange for monthly payments of the average spot rate of gold for the month. The bank offers to pay the jeweller the average spot rate of gold for the month in exchange for a fixed price of USD 1 300 per ounce of gold for the next 2 years. Calculate the monthly income and expenditure for the mine, the bank, and the jeweller. Also calculate the total amount paid and received over the period of the swap for all three parties.

Table

Datum / Datum/ Datum/ Datum/ Goudprys! Gold price Goudprys/ Gold price Goudprys/ Gold price Goudprys/ Date Date Date Date Gold price 2018/07/28 2019/01/28 $ 1279,00 DI $ 999,00 2019/07/28 $ 1 500,00 2020/01/28 $ 1 303,00 2018/08/28 2019/02/28 2019/08/28 $ 1 028,00 2020/02/28 $ 1704,00 $ 1 354,00 $ 981,00 $ 1 136,00 $ 1 689,00 2018/09/28 2019/03/28 2019/09/28 $ 1 342,00 2020/03/28 $ 1583,00 2018/10/28 $ 1219,00 2019/04/28 2019/10/28 $ 1 464,00 $ 1 286,00 . 2020/04/28 $ 1 265,00 2018/11/28 $ 1 667,00 2019/05/28 $ 1 187.00 2019/11/28 $ 1 586,00 2020/05/28 $ 1714,00 2018/12/28 $ 1315,00 2019/06/28 $ 1053,00 2019/12/28 $ 1 359,00 2020/06/28 $ 1 142,00 TOTAAL / TOTAL [40] B Datum / Datum/ Datum/ Datum/ Goudprys! Gold price Goudprys/ Gold price Goudprys/ Gold price Goudprys/ Date Date Date Date Gold price 2018/07/28 2019/01/28 $ 1279,00 DI $ 999,00 2019/07/28 $ 1 500,00 2020/01/28 $ 1 303,00 2018/08/28 2019/02/28 2019/08/28 $ 1 028,00 2020/02/28 $ 1704,00 $ 1 354,00 $ 981,00 $ 1 136,00 $ 1 689,00 2018/09/28 2019/03/28 2019/09/28 $ 1 342,00 2020/03/28 $ 1583,00 2018/10/28 $ 1219,00 2019/04/28 2019/10/28 $ 1 464,00 $ 1 286,00 . 2020/04/28 $ 1 265,00 2018/11/28 $ 1 667,00 2019/05/28 $ 1 187.00 2019/11/28 $ 1 586,00 2020/05/28 $ 1714,00 2018/12/28 $ 1315,00 2019/06/28 $ 1053,00 2019/12/28 $ 1 359,00 2020/06/28 $ 1 142,00 TOTAAL / TOTAL [40] B