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5. (10 points) You work for a jewelry business that will be needing 1,000 ounces of gold in one year. The current price of

5. (10 points) You work for a jewelry business that will be needing 1,000 ounces of gold in one year. The current price of gold is $1,118 per ounce and the risk-free rate is 4%. Your boss is considering hedging uncertainty by signing a futures contract today. (a) If there were no storage costs or benefits to owning the gold, what should the futures price for the one-year futures be?

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