inflation is starting to rise, and George Soros wants to invest in an asset that will maintain
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inflation is starting to rise, and George Soros wants to invest in an asset that will maintain its purchasing power. He puts his attention to gold and sees the spot price is $1,825 per ounce. The dividend yield on the S&P 500 is 2.5%. The risk-free interest rate is 0.75%. In addition, the storage and insurance cost for holding gold is 1% of the price of gold per year.
What is a fair price for a 6-month futures contract on gold?
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
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