We can get gold six months from now at a known price by buying it at the current spot price, holding it for six months, and funding the holding with a fixed- rate loan.

Question

Quizplus · Accepted Answer

The future cost of gold can be locked in by purchasing it at the current spot price and financing the purchase with a fixed-rate loan, which ensures the cost remains constant over the holding period.

We Can Get Gold Six Months from Now at a Known