Question
The spot price of gold is currently $ 1,706 /oz, while the 6-month forward price is $ 1,732/oz. Suppose gold has an active lease market
The spot price of gold is currently $ 1,706 /oz, while the 6-month forward price is $ 1,732/oz. Suppose gold has an active lease market with lease rate 1.8 % expressed in annualized continously-compounded terms, what is the implied repo rate?
Group of answer choices
3.31%
4.83%
3.00%
1.8%
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
3rd Edition
0470891696, 978-0470891698
