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The Spot gold price is $1,700/oz. If it costs $5 a year to store gold (payable in advance) and the 12-month risk-free rate is 3.5%,
The Spot gold price is $1,700/oz. If it costs $5 a year to store gold (payable in advance) and the 12-month risk-free rate is 3.5%, where should one-year gold futures be priced?
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Principles Of Finance
Authors: Scott Besley, Eugene F. Brigham
3rd Edition
0324232624, 9780324232622
