1. (5 points) The spot price of gold is $1,800 and the continuously compounded risk-free interest rate is 5%. Assume that gold will not have any storage cost. What is the futures price of gold with 12-month maturity? 2. (5 points) Consider a 1-year forward contract on Apple stock. Currently the stock is trading at $150 per share. The stock is expected to pay a cash dividend of $3 per share in six months. The continuously compounded interest rates are 3% for six months and 4% for 12 months. Calculate the fair price of the 1-year forward contract on the stock. 3. (10 points) Some time ago, you entered a forward contract to buy gold at K=$1,850. The forward contract has one year remaining to maturity. The current spot price of gold is $1,880 /oz and the risk-free interest rate is 5% (continuously compounded). Please calculate the value of this forward contract