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2. Let F denote the price of a forward contract on gold with maturity ti. Assume the cost-of- carry of gold is equal to the

2. Let F denote the price of a forward contract on gold with maturity ti. Assume the cost-of- carry of gold is equal to the continuously compounded risk-free rate of interest r. Show that F = Fet-61), for t2 >t. 14 marks

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