Question
The current price of gold is $1,280 per ounce. The storage costs are $24 per ounce per year payable quarterly in advance. Assume that interest
The current price of gold is $1,280 per ounce. The storage costs are $24 per ounce per year payable quarterly in advance. Assume that interest rates are 10% per annum for all maturities. Calculate the futures price of gold for delivery in nine months. a) What is the present value of the storage costs for the nine months of the futures contract? b) What is the futures price of the contract?
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The Best Retirement Guides For Adults Successful Techniques To Make Your Money Last A Lifetime
Authors: Rebecca W. Anderson
1st Edition
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