The following table shows 2014 gold futures prices for varying contract lengths. Gold is predominantly an investment
Question:
Contract Length (months)
3 6 12
Futures price $1,188.5.............. $1,189.5........... $1,190.0
Calculate the interest rate faced by traders in gold futures, assuming a zero net convenience yield, for each of the contract lengths shown above. The spot price is $1,188.2 per ounce.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Principles of Corporate Finance
ISBN: 978-1259144387
12th edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen
Question Posted: