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Calculate the price of a 1-year forward contract on gold. Assume the storage cost for gold is $5.00 per ounce, with payment made at the

Calculate the price of a 1-year forward contract on gold. Assume the storage cost for gold is $5.00 per ounce, with payment made at the end of the year. Spot gold is $900 per ounce and the risk-free rate is 5%.

Question options:

1)

$950

2)

$940

3)

$945

4)

none of the above

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