Question
The current spot price of gold is $1900 per ounce. The storage costs are $5 per ounce per year. The continuous compounding risk-free interest rate
The current spot price of gold is $1900 per ounce. The storage costs are $5 per ounce per year. The continuous compounding risk-free interest rate is 6% per annum for all maturities. Calculate the equilibrium price of gold futures for delivery in one year.
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Finance for Executives Managing for Value Creation
Authors: Gabriel Hawawini, Claude Viallet
4th edition
9781133169949, 538751347, 978-0538751346
