Question
Suppose that the current price of gold is $ 1,708 per oz. Suppose it costs $ 3 per oz per month to store gold (payable
Suppose that the current price of gold is $ 1,708 per oz. Suppose it costs $ 3 per oz per month to store gold (payable monthly in advance). Suppose also that the term structure is flat with a continuously compounded rate of interest of 3.7% for all maturities. Calculate the forward price of gold for delivery in 3 months.
Group of answer choices
1,716.97
1732.93
1.699.03
1,714.82
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Lessons In Corporate Finance
Authors: Paul Asquith, Lawrence A. Weiss
2nd Edition
1119537835, 978-1119537830
