Forum Archive Index - December 2003

["Woody" <solarmax@optusnet.com.au>]

Gold Options are traded in lots 0f 5000 troy onces
Option Contracts are multiples of 100

eg: if a June 2004 Gold 380 call is worth 42.00 then it will cost you
US$4,200 per contract to buy.


----- Original Message -----
From: "Patrick Charles" <tafari_1999@yahoo.com>
To: <sharechat@sharechat.co.nz>
Sent: Saturday, December 06, 2003 5:44 AM
Subject: [sharechat] Ounces of Gold Question?


> Greetings
>
> I think. The U.S. economy looks like it will pick up
> just in time for
> the elections, right on schedule, according to plan.
> After it takes
> off, interest rates will go up, lifting the dollar.
> Since gold didn't
> rise much against the euro, it shouldn't fall against
> the euro, and
> the 2 should fall against the dollar next year.
>
> The consequence for the 'carry trade' is that the
> purchase of an
> option to sell gold over $400 over the next year will
> be necessary.
> Then if the price drops, you can sell your leased gold
> at that price
> then buy back the leased amount (+1% for the interest)
> at the lower
> price. Unfortunately, you'll also have to purchase an
> option to buy in case of contingencies.
>
> Does anyone know how much  ounces of gold you'd have
> to buy to get the spot price (or sell)?
>
> Cheers
>
>
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