Assume that the spot price of gold is 300oz the effective, Ask an Expert

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Assume that the spot price of gold is $300/oz, the effective annual lease rate is 3%, and the effective annual risk-free rate is 5%.

A mine costing $275 will produce 1 ounce of gold on the day the cost is paid. Gold volatility is zero. What is the value of the mine?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93054087

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