Assume that you expect the price of gold to increase over the next month. Does your expectation of an increase in the price of gold play any role in determining the futures price of gold? Explain your answer.
Assume that you expect the price of gold to increase over the next month. Does your expectation of an increase in the price of gold play any role in determining the futures price of gold? Explain your answer.
Chapter4: Exchange Rate Determination
Section: Chapter Questions
Problem 1SBD
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Assume that you expect the price of gold to increase over the next month. Does your expectation of an increase in the price of gold play any role in determining the futures price of gold? Explain your answer.
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