Hi guys, Can u help verify if my calculation for futures price of gold is correct F = S * (1+ r)^T-t = 1600 * (1 + 2.96%)^(85/365) The risk free rate i get from: http://www.treasury.gov/resource-ce...interest-rates/Pages/TextView.aspx?data=yield and since 85 days remaing to end of year... is this how one would calculate the Futures price? tks!
The interest rate for less than 3 months is 0.01% not 2.96%. The future price of gold includes storage and insurance costs.