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Suppose the spot price of gold is $300 per ounce and the one-year forward price is $350. Assume the riskless interest rate is 7%. (4
- Suppose the spot price of gold is $300 per ounce and the one-year forward price is $350. Assume the riskless interest rate is 7%. (4 pts.)
- What is the implied cost of carrying the gold?
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- What is the implied storage cost of the gold?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
15th edition
134796551, 134796550, 978-0134796550
