615 points) a) What is the price of a 3 months gold futures contract? The continuous time annual interest rate is 5%. The storage cost (continuous time) is 1% and the convenience yield for gold is 2x (continuous time). The current price of gold is $300 per Ounce. Each contract is for 100 ounce. b) You are speculating that the gold is going up in price. Do you short or long gold futures? If at maturity, the gold price is $290, what is your profit