+ Gold Forward Price for delivery in 6 months 2202.64 (USD per ounce) Gold spot price (USD per ounce) Exchange rate Per annum 6-month US interest rate continuously compounded (T=0.5) 2157.41 0.6555 USD per 1 AUD 5.65% Strike Price in USD Over-the-counter European Over-the-counter European call option premium in USD put option premium in USD 1835 360.99 3.59 1940 267.35 12.02 2050 180.90 32.51 2157.41 113.33 69.36 2202.64 90.57 90.57 2265 64.7 125.32 2375 33.09 200.64 2480 15.94 285.57 ABC 1. Forward price is gold is calculated as FO=S0e^(r-q)T, where q is the known yield on gold or the lease rate, which is net of the convenience yield and storage costs. It can be implied from observed forward and futures prices. What is the per annum 6-month gold lease rate with continuous compounding that is implied from the 6-month forward contract on gold with a forward price of USD2202.64. 2. What does the gold lease rate represent and what does it mean when it is negative, which it has been in recent times.