A mine costing $275 will produce 1 ounce of gold on the day the cost is paid.

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A mine costing $275 will produce 1 ounce of gold on the day the cost is paid. Gold volatility is zero. What is the value of the mine? Discuss.

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Derivatives Markets

ISBN: 978-0321543080

4th edition

Authors: Rober L. Macdonald

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Question Posted: Dec 18, 2015 05:12 AM

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A mine costing $275 will produce 1 ounce of gold on the day the cost is paid.

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Back of envelope calculation S 275 005003 ...View the full answer

Derivatives Markets

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