3.10 Gold Example For the gold example in chapter 1 F0=S0(1+r)7 (assuming no storage costs) If r is compounded continuously instead of annually Fo= Soer 0 0 Options, Futures, and Other Derivatives, 4th edition@ 2000 by John C. Hull Tang Yincai, C 2003, Shanghai Normal University3.10 Options, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, © 2003, Shanghai Normal University Gold Example • For the gold example in chapter 1, F0 = S0 (1 + r ) T (assuming no storage costs) • If r is compounded continuously instead of annually F0 = S0 e rT