hard · Principles of Finance risk-return-portfolio
A gold forward contract is being priced for 6 months. The spot price of gold is $2,000 per ounce, the continuously compounded risk-free rate is 5%, and the annual storage cost is 0.5%.
What is the fair forward price?
- $2,050.00
- $2,045.50
- $2,055.75
- $2,112.50
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