Question: Please use EXCEL to solve it and show the equation, THANKS The Spot price of gold is $250 per oz; 90- day custodian fee (

Please use EXCEL to solve it and show the equation, THANKS

The Spot price of gold is $250 per oz; 90- day custodian fee ( storage and Show your answers along with the formula and steps you used insurance , due at the beginning of the period ) = $4 per oz; The risk free for each question . interest rate is 6% p.a . The size of the futures contract is 100 0z . Use 30/360 day count convention and simple interest rate . A ) Ans :" A . Calculate the arbitrage - free price of a gold futures contract that expire in 90 days . ( 1 point ) B. Illustrate how an arbitrage profit can be made if the future contract is B ) Ans :" price at $ 260 per oz and calculate the arbitrage profit . ( 2 point ) C. Illustrate how an arbitrage profit can be made if the future contract is price at $250 per oz and calculate the arbitrage profit . ( 2 point ) C ) Ans :&quot

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Please use EXCEL to solve it and show the equation, THANKS The discount rates on I- bills are as follows : Assume $1 par value . Show your answers along with the formula and steps you used Use...

Please use EXCEL to solve this question and show the formula, THANKS! Show your answers along with the formula and steps you used for each question. The Spot price of gold is $250 per oz: 90-day...

AND 1. THE USE OF CALCULATORS SPREAASHEETS 2. PLEASE MAKE SURE TO WRITE Stolal ANSWER EXPLANATIONS THAT ARE SUPPORTED BY YOUR CALCULATIONS deep AsE OuESTION 3. PLEASE USE EXCEL TO CALCULATE AND SHOW...

3 COLLEGE ALGEBRA - TRIGONOMETRY Business and Finance (MAT115) This course will start with a review of basic algebra (factoring, solving linear equations, and equalities, etc.) and proceed to a study...

19 Name: ____________________________________ 1. Your friend has a credit card with an APR of 49.9% ! What would his finance charge be on a $500 charge for just 1 month? 2. Your friend has 2 credit...

What factors should be considered in deciding whether the cost of capital for a foreign affiliateshould be higher, lower, or the same as the cost of capital for a comparable domestic operation?...

PLEASE COMPLETE NO LATER THAN 10/07 @8:00AM Each question(1,2,& 3) must be a minimum of 200 words. Please make answers detailed and knowledgeable based off the attached reading. ARE YOU ABLE TO...

I would like to know if someone can assist with inputting the formulas into the Excel spreadsheets..... Answers are provided, however, the formulas were omitted. Week 9 Chapter 21: Problems 3(a-e),...

Please see attachment. All three question need to be answered in narrative format. If you have questions, just let me know. Normal requirement for references are 2 outside our course text....

Looking for assistance in Finance HW..... I ONLY Need the FORMULASin the function ribbon (for the answers that I already have, which are attached below) Please advise if you can assist and provide...

Liz Perry, is the chief financial officer of the Pasta House, a not-for-profit entity that provides hot meals to the homeless. She is considering the acquisition of a pasta processor with a cost of...

A clinic took temperature readings of 250 flu patients over a weekend and discovered the temperature distribution to be Gaussian, with a mcan of 101.00 F and a standard deviation of 0.7140 F. Use...

The will of Martin Lake made a specific bequest of $ 4 , 0 0 0 to Martin's brother, Garrett. In its first year, the estate received income of $ 3 , 5 0 0 . The $ 4 , 0 0 0 bequest was paid, but no...

Consider two point charges Q and QR/h (where R is a positive length, 0 < R < h). Let point charge Q is on the positive z-axis at the point z = h and Q R/h is on the z-axis at the point z =...

Four identical point charges are fixed at the same distance from point P. "lbe charges are either +Q or -Q. Each action described is made to the situation shown in the diagram (i.e.. "Change sign of...

Q1 (30P). Given the circuit below with 1=10 V and 2=20 V batteries as indicated in the diagram. The resistors values are R1=5 N, R2=2 N, R3=2 0, R4=4 N, R5=5 0. Determine the followings by using...

What is the difference between two important methods of depreciation Straight-line. declining balance. and how it impacts Finance. with example .

Tori and some other childeen experimented with balls to see which ones rolled. First using a piece of cardboard to use as a ramp, they angled it on a block to the floor to test the balls. Then Tori...

Does the example of Roger Boisjoly fit the complicity theory better than it does the standard theory? If it does, is that a good argument for lhe complicity theory? Can you think of any examples of...

What mal

Explain the three paradoxes that Davis claims the standard theory gives rise to. If you were a defender of the standard theory, how might you reS1J011d to Davis's arguments?