Suppose that the market price of risk for gold is zero. If the storage costs are 1%

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Suppose that the market price of risk for gold is zero. If the storage costs are 1% per annum and the risk-free rate of interest is 6% per annum, what is the expected growth rate in the price of gold? Assume that gold provides no income.

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Options Futures and Other Derivatives

ISBN: 978-0134472089

10th edition

Authors: John C. Hull

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Question Posted: Feb 12, 2018 12:28 PM

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Suppose that the market price of risk for gold is zero. If the storage costs are 1%

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If its market price of risk is zero gold must after storage ...View the full answer

Options Futures and Other Derivatives

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