2013 CFA Institute Sample Exam (30 Paid Questions) Results

Hi guys,
Do those sample exams provide you with answers with detailed solutions like schweser or at least some explanation like Mocks? Also, can I print out those papers after I finish them? Thanks!
 
The lender saves the storage cost . In return the lender/buyer pays the borrower/seller a lease rate. This is like a negative dividend ,because the lease rate is owed to the lender.
Physical gold buying / then lending should only happen when lease rates are below the storage costs of gold, so that the lender borrower can save money on storage costs by having to pay less lease rate
 
WHo is the lender? Is it the person who bought spot gold in time t and shorted the future in time T+1?
 
I may sound like an idiot here… so please excuse me! If you execute an exposure to gold thru physical buying, wouldn’t you have to pay the storage costs? If storage costs are below lease rates, then it would be benefical to just keep the physical gold rather than lend it out, am I right? The question referred to in what circumstance would we just buy the gold.
Oh wait. If lease rates are higher, you would then want to lend out the gold and get the net lease - storage benefit rather than just paying the storage costs. I think I just got it.
 
Andy, don’t worry about it until you take #2 tomorrow. IT’ll make sense when you see the question. it’s number 60.
 
Wait no, I’m wrong again. If you short spot/long forward, you’d have to pay the lease rate while the long spot would take on the storage costs. If the lease rate > storage costs, it’s not worth it to lend it, and would be more beneficial to just store it. My head hurts
 
I think going by what people are saying about the q in the test , it’s not necessarily any forward price driving the argument . Its only storage costs versus lease rates , and buying spot gold versus buying a futures contract.
Buying spot gold instead of futures is only attractive if you can overcome the cost of storage. And the way you overcome is by paying a smaller amount to the borrower to take the gold off your hands .
lender pays lease rate and saves storage cost. If he cannot save money by paying less in lease rate , he should go for gold futures
 
J, that made a lot of sense. I just have to not think of it as a cash and carry question. Thank you so much for spelling it out in the last post, that’s an immense help. I’ve been brooding over this Q since I reviewed my sample #2 and it had been driving me nuts.
 
still not clear who is lender. Buying gold @ spot makes you a lender but you pay a lease rate to loan out your gold? I thought you borrow money at Rf to buy the gold at spot.
 
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