What is an upper bound price?

$1150 is just the upper bound on the forward price. If you actually have the money, then you would not need to borrow the money, but you would still need to pay the opportunity cost of having your money tied up in the gold rather than lending it out at 5\%.

How do you calculate upper and lower bound values?

A quick way to calculate upper and lower bands is to halve the degree of accuracy specified, then add this to the rounded value for the upper bound and subtract it from the rounded value for the lower bound.

What is a lower bound estimate?

A value that is less than or equal to every element of a set of data. Example: in {3,5,11,20,22} 3 is a lower bound. But be careful! 2 is also a lower bound (it is less than any element of that set), in fact any value 3 or less is a lower bound.

What are the upper and lower bounds for the trade price of cheese?

In terms of Germanys cheese the opportunity cost is highest and equal to ½, it’s upper bound for trade is ½. For cheese produced within France the lowest and equal to 1/8, giving it a lower bound trade of 1/8.

What is an upper bound for the one year futures price of oil?

What is an upper bound for the one-year futures price of oil? The present value of the storage costs per barrel is e−0.05×1 = 2.854. An upper bound to the one-year futures price is (80+2.854)e0.05×1 = 87.10.

What does lower bound and upper bound mean in statistics?

Lower bound: a value that is less than or equal to every element of a set of data. Upper bound: a value that is greater than or equal to every element of a set of data.

What is the difference between upper bound and lower bound?

What is the upper bound of the function?

Definition 1. An upper bound for a function f is a number U so that: for all x, we have f(x) ≤ U. We say f has an upper bound U on the interval [a, b] if: for all x on [a, b], we have f(x) ≤ U. Similarly for lower bounds and bounds in absolute values.