Compare these prices to the traded futures prices

Reference no: EM131457967

Question: (Excel) For gold and silver, collect from the internet today's spot prices as well as futures prices for futures contracts maturing up to one year. Also collect Treasury bill prices of different maturities. Using the above data, perform the following for three of the most actively traded futures contracts for gold as well as for silver:

a. Assuming that interest is the only cost of carry, use Result 11.1 (Costof-Carry Model) of Chapter 11 to compute forward prices that correspond to the maturities of three of the most actively traded contracts for the two metals.

b. Compare these prices to the traded futures prices. Do they seem significantly different? If so, explain why.

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Reference no: EM131457967

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