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Six months ago, a jeweler entered into a one-year forward contract to buy 300 troy ounces of gold at the price of $1,900 per ounce.
Six months ago, a jeweler entered into a one-year forward contract to buy 300 troy ounces of gold at the price of $1,900 per ounce. Today, the six-month forward price of gold is $1,960 per ounce. The risk-free interest rate is 2% per annum with continuous compounding. What is the value today of the jewelers forward contract?
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
9th Edition
0321598903, 978-0321598905
