Calculate the futures price of gold for delivery in 10


Consider a 10-years futures contract on gold.The current price of gold is $150 per ounce.The storage costs are $0.1 per ounce per month paid every month in advance. Assuming that interest rates are 4% per year (continuously compounded), calculate the futures price of gold for delivery in 10 years.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Calculate the futures price of gold for delivery in 10
Reference No:- TGS02303564

Expected delivery within 24 Hours