Find the Forward Price for One Forward Contract for Gold

question 10

Essay

Find the forward price for one forward contract for gold that is selling for $1,449 spot,if the storage cost is $10 for the year and financing cost is 10% per year.

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Definitions:

Renewals

The process of extending the period of validity of an agreement, policy, or subscription, often with updated terms or rates.

New-Client Policies

Guidelines or rules established by a business or organization for managing or treating new clients.

Independent

Free from outside control; not depending on another's authority or subject to another’s jurisdiction.

Transaction Fee

A charge assessed for processing a financial operation, such as a bank transfer, stock trade, or credit card transaction.