Interest rates for different maturities (1yr, 2, 3, 4, 5) are (1.0%, 2.8, 4.5, 4.7, 4.0) respectively.
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4. Three years from now you will sell 10 ounces of gold and immediately deposit the proceeds for two years. The spot price of gold is $500 per ounce and it costs 10% to store gold. You decide to hedge all risk. How much will you have at t=5?
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
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