It is now January. The current interest rate is 3.8%. The June futures price for gold is $1490.60, while the December futures price is $1,500. 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
+3
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “It is now January. The current interest rate is 3.8%. The June futures price for gold is $1490.60, while the December futures price is ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Home » Business » It is now January. The current interest rate is 3.8%. The June futures price for gold is $1490.60, while the December futures price is $1,500.