Today Is January 1

question 4

Multiple Choice

Today is January 1.The forward price for a gold forward maturing on April 1 is $1,560 per ounce.The continuously compounded interest rate is 6 percent per year.Then the forward price for a forward contract on gold maturing on July 1 is:

• A) $1,529.56
• B) $1,541.08
• C) $1,569.24
• D) $1,583.58
• E) None of these answers are correct.

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Definitions:

Zone of Tolerance

The range within which customers are willing to accept variations in service delivery before their satisfaction is affected.

Request

An act of asking formally or politely for something.

Legitimate Power

Power that is based on position and mutual agreement; agent and target agree that the agent has the right to influence the target.

Mutual Agreement

A mutual agreement involves a concord or pact between two or more parties, where each party has a clear understanding and is in accord about the terms and conditions discussed.