Consider a one-year commodity swap with semiannual payments. The current spot price is $50 and the six-month and one-year forward prices are both $60. The riskless interest rate is 5% (compounded continuously). What is a fair fixed price for the swap?

3. For each of the following assets, indicate in the space provided whether the cost of carry model implies that the forward curve should be upward sloping (+), downward sloping (), or could be either upward or downward sloping (?).

   ______ A non-dividend-paying stock. ______ A coupon-bearing bond. ______ A foreign currency. ______ Natural gas.