(a) the spot price of oil is USD 55 per barrel and the cost of storing a barrel of oil for one year is USD 3, payable at the beginning of the year. The risk-free interest rate is 2% per annum, continuously compounded. Calculate the one-year futures price of oil.

(b) A funds manager holds a long position in a Nikkei 225 futures contract that has a remaining maturity of three months. The continuously compounded dividend yield on the Nikkei 225 Stock Index is 1.1% and the current stock index level is 16,080. The continuously compounded annual interest rate is 0.2996%. Calculate the current no-arbitrage futures price of the Nikkei 225 futures contract