A financial institution makes an offer to a potential client: choosing between borrowing cash or borrowing gold. Cash can be borrowed at 9.5 % per annum, and gold - at 1.5% per annum. The risk-free interest rate is 6.00% per annum, and storage costs are 0.95% per annum. Explain if the rate of interest on the gold loan is too high or too low in relation to the rate of interest on the cash loan? Additional information: Interest rates on the loans are expressed with annual compounding. The risk-free interest rate and storage costs are expressed with continuous compounding. Interest on borrowed gold must be repaid in gold a loan of 10 ounces today require a repayment of 10.15 ounces in one year.