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The spot price of Gold is $34 per ounce. The storage cost is 3% per annum. Gold has a convenience yield of 2% per annum.
The spot price of Gold is $34 per ounce. The storage cost is 3% per annum. Gold has a convenience yield of 2% per annum. Assuming that the interest rates are 9% per annum for all maturities, calculate the following futures prices for delivery in 183 days:
Futures Price of Gold (per ounce) - No Storage Cost and No Convenience Yield
Futures Price of Gold (per ounce) - With Convenience Yield
Futures Price of Gold (per ounce) - With Storage Cost
Futures Price of Gold (per ounce) - With Storage Cost and Convenience Yield
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