Computing futures price of gold

[afx111]

Hi guys,

Can u help verify if my calculation for futures price of gold is correct

F = S * (1+ r)^T-t
= 1600 * (1 + 2.96%)^(85/365)

The risk free rate i get from:

http://www.treasury.gov/resource-ce...interest-rates/Pages/TextView.aspx?data=yield

and since 85 days remaing to end of year...

is this how one would calculate the Futures price?

tks!

 

[jeb9999]

The interest rate for less than 3 months is 0.01% not 2.96%.

The future price of gold includes storage and insurance costs.