The current price of one troy ounce of gold is $1,972.68. The yearly risk-free CCIR is 7.89%. Assume that 1 ounce of gold pays a one-time cash dividend of $154.27 in 9.65 months from now.

What is the no-arbitrage price of one ounce of gold for delivery 10.74 months from now?

Answer rating: 100% (QA)

To calculate the noarbitrage price of one ounce of gold for delivery 1074 months from now we need to ... View the full answer