The gold futures with delivery date on 25 May 2022 is priced at $1955.8. The gold futures

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The gold futures with delivery date on 25 May 2022 is priced at $1955.8. The gold futures with delivery date on 28 December 2022 is priced at $1977.8. The risk free rate is 1.0% per annum, and the convenience yield is 0. Assume 365 days in a year.

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Compute the spot price and cost of carry of gold according to the cost of carry model.

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Financial Reporting and Analysis

ISBN: 978-0078025679

6th edition

Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon

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Posted Date: Jun 15, 2023 06:32 AM

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The gold futures with delivery date on 25 May 2022 is priced at $1955.8. The gold futures

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According to the cost of carry model the spot price of gold can be calculated using the formula Spot ... View the full answer

Financial Reporting and Analysis

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