Question

In: Finance

in 1996 an ounce of gold sold for $369 and for $1060 in 2015, what was...

in 1996 an ounce of gold sold for $369 and for $1060 in 2015, what was the change in the price of gold over this period?

Solutions

Expert Solution

Change over the 19 year period = 1060/369-1 = 187.26%
Annual rate of change = (1060/369)^(1/19)-1 = 5.71%

Related Solutions

The current price of gold is $1688 per ounce. The volatility of gold price is 20%...
The current price of gold is $1688 per ounce. The volatility of gold price is 20% per annum. The continuously-compounded risk-free rate is 5% per annum. What is the value of a 3-month call option on an ounce of gold with a strike price of $1750 according to the BSM model?
A trader can sell gold at $794.00 per ounce and buy it at $800.00 per ounce....
A trader can sell gold at $794.00 per ounce and buy it at $800.00 per ounce. The trader can invest money at 5.7% per year and borrow money at 6% per year, each compounded annually. For what range of two-year forward prices of gold does the trader have no arbitrage opportunity? Assume no storage costs.
Microeconomic Gold between 2015-2019 Explain what has happened to prices of the gold between 2015-2019 over...
Microeconomic Gold between 2015-2019 Explain what has happened to prices of the gold between 2015-2019 over the time period stated: Use the model of supply and demand and provide a textual and diagrammatic explanation, using the supply and demand curves for the changes in the prices of the gold between 2015-2019 Explain the elasticity of supply and demand of the gold between 2015-2019 Discover and describe the market structure of the gold between 2015- 2019 and specifically if there are...
Suppose the current price of gold is $1,440 an ounce. Hotshot Consultants advises you that gold...
Suppose the current price of gold is $1,440 an ounce. Hotshot Consultants advises you that gold prices will increase at an average rate of 14% for the next two years. After that the growth rate will fall to a long-run trend of 3% per year. Assume that gold prices have a beta of 0 and that the risk-free rate is 6%. What is the present value of 1.2 million ounces of gold produced in 10 years? WRITE YOUR ANSWER IN...
The current spot price of gold is $1,780 per ounce (oz.)
The current spot price of gold is $1,780 per ounce (oz.). Storing gold costs $12 per oz. per year, and the storage costs are paid when the gold is taken out of storage. The risk-free rate is 5% per annum (continuously compounded).i) What is the futures price for gold delivery in three-month?ii) If the current futures price for delivery of gold in three-month is $1810 per oz., identify a riskless arbitrage strategy
What is the energy in J of a photon of light with a frequency of 1060...
What is the energy in J of a photon of light with a frequency of 1060 Hz? Please sure to answer with correct number of significant figures and use unit after the number. Explain what is meant by atomic (line) spectrum. (Give the experimental conditions necessary for its observation.) Then use Planck's quantum theory to explain why the spectrum is not continuous.
The current price (in June) of gold is $1,900 per ounce. Daphne wants to write a...
The current price (in June) of gold is $1,900 per ounce. Daphne wants to write a long forward on an ounce of gold for 3 months from now (in September). The current continuously compounded risk-free interest rate is 4% per annum. In the following calculations, ignore any tax, transaction costs, and other fees. a) Calculate the arbitrage-free forward price. [2 marks] b) Suppose the current market forward price is $1,925. Describe all the steps you would take to make an...
1. Suppose the price of gold is $850 per ounce. a. If the pound sterling price...
1. Suppose the price of gold is $850 per ounce. a. If the pound sterling price of gold is £560 per ounce, what should you expect the pound price of a dollar to be? b. If it actually only costs £0.50 to purchase a dollar, could you make a profit here? If so, how? And if not, why not? (2 pts) c. How will the bond be affected Increase, Decrease, or stay the same The bond is exempt from federal...
The spot rate of gold is $1,200 per ounce. Please plot the payoff of buying a...
The spot rate of gold is $1,200 per ounce. Please plot the payoff of buying a call option on an ounce of goldwith a $50premium and the strike price equal to $1,200.
Gold has a density of 19.3 g/cm^3. Current price is $1192 per troy ounce. What is...
Gold has a density of 19.3 g/cm^3. Current price is $1192 per troy ounce. What is the value of a cube of a gold with a side length of 1 inch? (1 troy ounce = 31.1g) (2.54cm=1inch)
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT