18. Assume that markets are perfect in the sense of being free from transaction costs and restrictions on short selling. The spot price of gold is $370 per ounce. Current interest rates are 10% compounded monthly. According to the Cost-of-Carry Model, approximately what should the price of a gold futures contract be if expiration is six months away? Assume that the cost of storing the gold is $0. (There 100 ounces of gold in a gold futures contract.) a. $375.72 b. $381.46 c. $388.89 d. $394.63 e. $399.95 19. Consider the information in question 18. Say however, that the cost of storing the gold is $0.15 per month per ounce all of which is paid at the maturity of the futures contract. What upper bound on the futures contract price is consistent with the Cost-of-Carry Model? That is, above what futures price can arbitrage first take place. a. same as the correct answer to question 18 b. the correct answer to question 18 $0.15 c. the correct answer to question 18+$0.15 d. the correct answer to question 18 - $0.90 e. the correct answer to question 18+$0.90 20. The S&P500 stock index currently is 1000.00. The risk-free interest rate is 6% per year and the dividend yield on the index is 2% per year. Approximately what should be the equilibrium futures price on a contract which matures in six months? (You can use either continuous or discrete compounding.) a. 1005 b. 1010 c. 1015 d. 1020 e. 1030