13

Gold and OtherCommodities

“… it is generally not possible to give a clear formula for a theoretical forward price for a commodity in the same way as for a financial instrument.”

Gold

Gold borrowing, forwards, swaps and GOFO

Other commodities

Forward pricing and convenience yield

Commodity futures and EFP (Exchange For Physical)

FRAs, swaps and options

Exercises

Where you see the WWW icon in the following, this calculation is available already programmed in Microsoft® Excel to be used online or downloaded (or copied and pasted) for your own use. Go to www.markets-international.com and clickCalculations’.

GOLD

The term “precious metals” covers gold, silver, palladium, platinum and the other “platinum group” metals (rhodium, ruthenium, ...

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