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1. Sell a call option contract on Gold, with the most heavily traded strike price today. You choose the maturity date. What does writing this contract give you the obligation to do? If this is your only position in GOLD, are you long or short GOLD.

2. If the cost of capital is 10%, what is the present value of $450 paid in year 8? (round to nearest whole dollar)

Financial Management, Finance

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