The gold futures price for one year contract should be

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1. A project has an initial cost of $60,000, expected net cash flows of $11,000 per year for 8 years and a cost of capital of 10%. What is the project's NPV?

2. Portfolio A has the average return of 12%, standard deviation of 24%, and beta of 0.85. In the same sample period, the S&P 500 portfolio has the average return of 13% and the standard deviation of 22%. The risk-free rate is 4%. What is the T2 measure of portfolio A?

3. The spot price of gold is $1,100 per ounce. The risk-free interest rate is 5%. It costs S5 to store an ounce of gold for a year (the storage cost is payable today). The gold futures price for a one year contract should be.

Reference no: EM132002277

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