1. A Seller buys gold, which is the primary input needed for her products. The cost of all other inputs is negligible and can be ignored. One ounce of gold is needed to produce one unit of Jewelry. She is able to sell each unit of Jewelry for 800 plus 20% of the market price of gold in one year. In one year, the actual price of gold will be in one of 3 possible states, corresponding to the following probabilities: Price of 850 per ounce, with probability 20% Price of 950 per ounce, with probability 50% Price of 1050 per ounce, with probability 30% The Seller wants to use forward contracts to lock in the 1-year gold prices, in which case she would charge customers (one year from now) 800 plus 20% of the forward price. The 1-year forward price for gold is 950. Calculate the increase in expected 1-year profit, per unit of Jewelry sold, that results from buying a forward on the 1-year price of gold