3.9 Gold Example(From Chapter 1) For gold F0=S0+r)7 (assuming no storage costs) If r is compounded continuously instead of annually Fo= soe Options Futures, and other Derivatives, 5th edition C 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 3.9 Gold Example (From Chapter 1) • For gold F0 = S0 (1 + r ) T (assuming no storage costs) • If r is compounded continuously instead of annually F0 = S0 e rT