What is the value of gold futures contracts at the


Forward/Futures Contracts. Nine months ago, a jeweler entered a one-year forward contract to buy 500 troy ounces of gold for $1,850 per ounce. Today, the three-month forward and futures price of gold closed at $1,670 per ounce. The interest rate is 2% per annum. (a) What is the value of the jeweler's forward contract at the end of today? (b) If the jeweler had entered futures contracts on gold, what would have been his profit (loss)? (c) What is the value of gold futures contracts at the completion of their daily settlement today? What is the most important benefit of the daily settlement?

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Finance Basics: What is the value of gold futures contracts at the
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