If the 2 months futures price on gold is $1,306, Interest rate is 10% per annum....
If the 2 months futures price on gold is $1,306, Interest rate is 10% per annum. What should the spot price be? Accurate your answer in 2 decimal places
Homework Answers
The spot rate is :
Future price is $1306
Interest rate is 10%
Spot rate * (1 + interest ) ^n = forward price
Spot rate * (1.1)^ 2/12 = $1306
Spot rate = $1,306/ 1.016
= $1285.43 ( rounded off to two decimal places)
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If the 2 months futures price on gold is $1,306, Interest rate
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