Futures using the parity relationship

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Reference no: EM131050009

It is now January. The current interest rate is 6.2%. The June futures price for gold is $1548.00, while the December futures price is $1,546. Assume the June contract expires in exactly 6 months and the December contract expires in exactly 12 months.

Calculate the appropriate price for December futures using the parity relationship?

Reference no: EM131050009

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