Consider the last row of Table 17.1. What is the solution for S and S when Ks

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Consider the last row of Table 17.1. What is the solution for S∗ and S∗ when Ks = kr = 0? (This answer does not require calculation.)
In the following five problems, assume that the spot price of gold is $300/oz, the effective annual lease rate is 3%, and the effective annual risk-free rate is 5%.
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Derivatives Markets

ISBN: 978-0321543080

4th edition

Authors: Rober L. Macdonald

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