What is the cost of carry for gold if there are 219 days until delivery (assume a 365 day year)?
b. On April 23, 1999, LIBOR was 5.10%. Comparing this to your cost of carry from (a), what conclusions might you draw? Sample 7. A footpath intersects a narrow road at right angles. An observer stands on the path 100 feet from the road. A car drives down the road at a constant rate of 30 feet/second, passing the foot path. How fast is the distance between the observer and the car increasing when the car is 50 feet beyond the path? (Hint: Define your variables carefully. Represent rates with derivatives. Relate variables to one another using the Pythagorean Theorem. You will also need the chain rule.) Sample 8. A portfolio has a duration of 5 years. If interest rates fall .05% (5 basis points), how much will the portfolios value change? Sample 9. Find the following anti-derivative. Use the method of parts where appropriate. Check your answers by differentiating.
