Multiple Choice
Samantha has holdings of 250 troy ounces of platinum, currently valued at $820 dollars per ounce. She estimates that the price of platinum will rise to $869.20 per ounce in the next year. If the interest rate is 12%, should she sell the platinum today?
A) Yes, as the difference between the present value of selling now and selling in one year is $12,300 dollars today.
B) Yes, as the difference between the present value of selling now and selling in one year is $10,982 dollars today.
C) Yes, as the difference between the present value of selling now and selling in one year is $9840 dollars today.
D) No, as the difference between the present value of selling now and selling in one year is -$8786 dollars today.
Correct Answer:
Verified
Correct Answer:
Verified
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