298481278-American-Barrick-Case-Assignment.pdf - American...

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American Barrick Case Assignment Reported by: Madison Cavanagh-Mailloux Ting Nie Kecheng Chen Nicholas Murry Daniil Proskura 6. What is a “spot deferred contract?” Is it an option? A forward contract? Why has ABX chosen to rely on spot deferred contracts relative to other gold derivatives?
between 5 and 10 years after the initiation of the contract. Although the seller must ultimately deliver the quantity of gold called for in the forward contract, the specific delivery date is not decided in advance. Viewed from American Barrick’s perspective, the benefit of entering into an SDC versus a forward contract is that if the spot gold price is

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