3. A company enters into a forward contract with a bank to sell 50,000 ounces of gold at a price of $1500 per ounce on December 3, 2019. Suppose that on December 3, 2019 the spot price of gold is $1650 per ounce and the company asks the bank if it can roll the contract forward six months until June 3, 2020 rather than settle on December 3, 2019. The bank agrees to a new delivery price Kn. This means that instead of selling 50,000 ounces of gold at a price of $1500 per ounce on December 3, 2019 the company will now sell the bank 50,000 ounces of gold at a priceof $Kn per ounce on June 3, 2020. Determine Kn assuming that on December 3, 2019 the six-month interest rate is 4% per annum with continuous compounding and the storage costs of gold (as a proportion of the spot price) are 3 % per annum with continuous compounding. Hint: The new delivery price Kn must be such that on December 3, 2019 the value of the new (rolled over) forward contract is the same as the value of the existing contract.