You trade gold futures. The price of one ounce of gold is $1000. The interest rate is
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You trade gold futures. The price of one ounce of gold is $1000. The interest rate is 0%. The annual storage cost of gold is $20 per ounce per year. There are two gold futures contracts. First expires in 1 year from now and the second in 2 years from now. What are the fair prices of these two contracts?
Related Book For
Statistics For Business Decision Making And Analysis
ISBN: 9780134497167
3rd Edition
Authors: Robert A. Stine, Dean Foster
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