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Nine-Month Gold Futures Are Trading for $306 Per Ounce

Question 8

Multiple Choice

Nine-month gold futures are trading for $306 per ounce. The spot price is $295 per ounce. LIBOR during each of the upcoming 4 quarters is listed as 1.04%, 1.22%, 1.30%, and 1.35%, respectively. Calculate the 9-month lease rate on the futures contract.


A) 2.4%
B) 2.1%
C) 1.3%
D) 0.0%

Correct Answer:

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