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    Introduction to Corporate Finance Study Set 3
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    Exam 11: Forwards, Futures, and Swaps
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    Find the Forward Price for One Forward Contract for Gold
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Find the Forward Price for One Forward Contract for Gold

Question 6

Question 6

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.

Correct Answer:

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c = (0.10 x $1,449)+...

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