The current price of gold is $1,650 per ounce. Storage costs are assessed at an annual rate of $50 per ounce, payable quarterly in advance (meaning that the share of this cost for each quarter is due...


The current price of gold is $1,650 per ounce. Storage costs are assessed at an annual rate of $50 per ounce, payable quarterly in advance (meaning that the share of this cost for each quarter is due at the beginning of that quarter). Assuming that interest rates are 3.6% per annum (continuously compounded) for all relevant maturities,
calculate the futures price of gold for delivery in nine months.



Jun 08, 2022
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