On oct 10 2015 gold on the spot market is at 1000 an ounce, Ask an Expert

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On Oct 10, 2015, gold on the spot market is at $1,000 an ounce. A forward gold contract for delivery of gold on Oct 10, 2016 is priced at $1,030. Three months pass and spot gold is still at $1,000. What should be the approximate price of the Oct 10, 2016 forward contract now? Assume that the risk-free rate has not changed in the three months and that there are no storage and other costs.

a) 1,030

b) 1,022

c) 1,015

d) 1,000

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91535733

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