Consider a one-year futures contract on gold. We assume 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 $1600 per ounce and the risk-free rate is 5% per annum for all maturities. Note: For this question, we assume that the underlying asset of each gold futures contract is ONE ounce of gold.

(1) What is the present value of the storage cost?

(2) What is the theoretical futures price?