Alloyum Costs $0

question 14

Multiple Choice

Alloyum costs $0.10 per month to store (which is paid up front) but gives a convenience yield of $0.12 per month (which is received on the maturity date) .If Alloyum's spot price S is $200 per ounce and the continuously compounded interest rate r is 5 percent per year,then the six-month forward price is:

• A) $204.96
• B) $210.03
• C) $205.05
• D) $224.93
• E) None of these answers are correct.

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Definitions:

Need for Affiliation

A psychological drive that compels individuals to seek out social interactions and relationships.

Birth Order

The sequence at which a person is born in their family, which is thought to have an impact on their personality and psychological development.

Instincts

Innate, fixed patterns of behavior in animals in response to certain stimuli.

Energizes Behavior

Energizes Behavior refers to processes or stimuli that motivate or invigorate an entity to perform actions or conduct themselves in a certain manner.