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Consider a one-year futures contract on gold. We assume no income and that it costs $2 per ounce per year to store gold, with the
Consider a one-year futures contract on gold. We assume no income and that it costs $2 per ounce per year to store gold, with the payment being made at the end of the year. The spot price is $1,600 and the risk-free rate is 5% per annum for all maturities. What is the price of this forward contract?
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