Question
Samantha has holdings of 255 troy ounces of platinum, currently valued at $815 dollars per ounce. She estimates that the price of platinum will rise
Samantha has holdings of
255 troy ounces of platinum, currently valued at $815 dollars per ounce. She estimates that the price of platinum will rise to $ 863.90 per ounce in the next year. If the interest rate is
12%,
should she sell the platinum today?
A.Yes, as the difference between selling now and selling in one year is
$9,976
dollars today.
B.Yes, as the difference between selling now and selling in one year is
$12,470
dollars today.
C.Yes, as the difference between selling now and selling in one year is
$11,133
dollars today.
D.No, as the difference between selling now and selling in one year is
$8,906
dollars today.
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