A trader owns gold as part of a long-term investment portfolio. The trader can buy gold for $570 per ounce and sell gold for $569 per ounce. The trader can borrow funds at 6% per year and invest funds at 5.5% per year. (Both interest rates are expressed with annual compounding.) What is the lower bound for the one-year forward prices of gold that will ensure no arbitrage opportunities

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where mr

Jallouk corporation has two different bonds currently outstanding. bond m has a face value of $50,000 and matures in 20 years. the bond makes no payments for the first six years, then pays $2,100 every six months over the subsequent eight years, and finally pays $2,400 every six months over the last six years. bond n also has a face value of $50,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. the required return on both these bonds is 10 percent compounded semiannually. what is the current price of bond m and bond n?

Which of the following has the largest impact on opportunity cost