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3. A 1-year forward contract on a gold with current stock price is $200 / gram. We assume that the risk-free rate of interest (continuously

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3. A 1-year forward contract on a gold with current stock price is $200 / gram. We assume that the risk-free rate of interest (continuously compounded) is 10% per annum for all maturities. Find the cost of forward. a. The no storage cost till maturity. (5 Marks) b. The writer has to pay a storage cost of 3% for the year

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