Find what futures price cause to take no action


One use for futures markets is "price discovery," i.e., futures price mirrors current consensus of future price of commodity. Current price of gold is $ 950 but you expect price to rise to $ 1,000. If futures price were given as $ 990, what would you do? If expectation is fulfilled, determine profit? If futures price were $ 1,018, what would you perform? Find what futures price cause to take no action? Explain why?

Request for Solution File

Ask an Expert for Answer!!
Mathematics: Find what futures price cause to take no action
Reference No:- TGS0868379

Expected delivery within 24 Hours