Today's spot price of gold is $1,600 per ounce.The continuously compounded interest rate is 5 percent per year.The quoted six-month forward price for gold is $1,650.
-The arbitrage-free six-month forward price for gold is:
A) $1,616.16
B) $1,630.00
C) $1,640.50
D) $1,648.03
E) None of these answers are correct.
Correct Answer:
Verified
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