On 2 Nov 2026, gold was about $3,975/oz, USDINR about 94.5, duty 15%, and MCX GOLD December 2026 traded at ₹1,38,839/10 g (notes 10.5.3). (a) Compute spot parity for fine gold. (b) Adjust for 995 fineness. (c) Adjust for 33 days of carry at 5.5% with zero lease rate. (d) Compute the implied premium of the MCX quote over your fair value in (c). Explain why the naive formula worked well, and when it would not.
M10 · Problem 10 ★★ Check
Refining the parity
Answers
Working
Keep your working next to each problem, in markdown with maths: create a free account or sign in.
Solution
Try the problem first. Write down where you got stuck before opening it.