It is now january. the current interest rate is 4.4%. the june futures price for gold is $1483.40, while the december futures price is $1,491. assume the june contract expires in exactly 6 months and the december contract expires in exactly 12 months.
a. calculate the appropriate price for december futures using the parity relationship? (do not round intermediate calculations. round your answer to 2 decimal place.)
price for december futures $
b. is there an arbitrage opportunity here?
no
yes
Answers: 2
Another question on Business
Business, 21.06.2019 21:40
Torino company has 1,300 shares of $50 par value, 6.0% cumulative and nonparticipating preferred stock and 13,000 shares of $10 par value common stock outstanding. the company paid total cash dividends of $3,500 in its first year of operation. the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:
Answers: 2
Business, 22.06.2019 10:40
What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk
Answers: 1
Business, 22.06.2019 22:50
Which of these makes a student loan different from other types of loans
Answers: 1
Business, 22.06.2019 23:40
John has been working as a tutor for $300 a semester. when the university raises the price it pays tutors to $400, jasmine enters the market and begins tutoring as well. how much does producer surplus rise as a result of this price increase?
Answers: 1
You know the right answer?
It is now january. the current interest rate is 4.4%. the june futures price for gold is $1483.40, w...
Questions
Spanish, 03.12.2019 01:31
Mathematics, 03.12.2019 01:31
Mathematics, 03.12.2019 01:31
Mathematics, 03.12.2019 01:31
Biology, 03.12.2019 01:31
Mathematics, 03.12.2019 01:31
Mathematics, 03.12.2019 01:31
Mathematics, 03.12.2019 01:31
History, 03.12.2019 01:31
Mathematics, 03.12.2019 01:31
Mathematics, 03.12.2019 01:31
