Consider a long forward contract to buy 1 ounce of gold. The gold spot price is $2000.00 per ounce. The storage cost of gold is 10$ to be paid in 3 months. The contract matures in 6 months. Assume that the annual effective interest rate is equal to 3%. Answer the following two questions:

(3 MARKS) What is an efficient forward price for the contract?

a.

2039.85

b.

2039.78

c.

2010.00

d.

2029.78

e.

2019.70$

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