8) Gold price today is $1845; the futures price that expires in 6 months (June 2021) is $1860 per ounce. You believe the price of gold will go up over the next 6 months. So you will buy one futures contract that expires in June 2021. There are 100 ounces of gold in each futures contract and the margin requirement for gold future is $3500 per contract.

a. Whats your futures initial position value when you buy this future contract?

b. If 6 months later, the price of gold goes up to $1890, whats the futures new position value?

c. Whats your return on investment (ROI) from the trade?

d. Whats the basis of the June 2021 futures?

e. If the risk-free rate is 3%, whats the gold futures price for June 2021 according to the Spot Future Parity?