Samantha has holdings of 250 ounces of platinum, currently valued at $815 dollars per ounce. She estimates that the price of platinum will rise to $850 per ounce in the next year. If the interest rate is 8%, should she sell the platinum today?
A) Yes, as the difference between selling now and selling in one year is $6 991 today.
B) Yes, as the difference between selling now and selling in one year is $5 513 today.
C) Yes, as the difference between selling now and selling in one year is $7 550 today.
D) No, as the difference between selling now and selling in one year is -$6 988 today.
Correct Answer:
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