Suppose that the 1-year gold lease rate is 1.5% and the 1-year risk-free rate is 5.0%. Both rates are compounded annually. Use the discussion in Business Snapshot 3.1 to calculate the maximum 1-year gold forward price Goldman Sachs should quote to the gold-mining company when the spot price is $1,200.
Phases of Negotiation Phase 1: Investigation and Preparation Phase 2: Presentation Phase 3: Bargaining Phase 4: Agreement Negotiation: goal is to reach a solution. Be respectful of other party, don't be afraid to make concessions, have a contract, define a goal, try to generate trust with other party, start positively, Parties are interdependent, believe that the solution is available. Negtotiation in high context cultures take longer. Common mistake in negotiation - Fear that we may be conceding too much - Selective attention and other perceptual bias - Winner’s curse and overconfidence - Failure to recognize cross cultural differences - Escalation of commitment******** making a choice that is not panning out as I thought it would. -
