Please show all computations by hand, i need to know how to do it manually.

11. Spot price of gold is $800 per oz, carrying cost 10%. Compute the forward prices for a. b. c. Use discrete compounding. If the 1-year forward price in the market is $895, what arbitrage steps 1 year and 2 year using discrete compounding? 1 year and 2 year using continuous compounding? [answer: $880, $968) [answer: $884.14, $977.12] would you use? If the 2-year forward price is $960 in the market, what arbitrage would you do? answer: 1 year forward price in the market is too high relative to the computed price. Sell the 1 year forward contract and to cover ("hedge") your position buy the spot gold and carry it for 1 vear The carried value of gold at the end of the year is $880, deliver against the short forward contract. Your net profit is $895-$880 $15. For the two year contract the forward price is too low relative to the computed price. Do 'reverse arbitrage" by shorting gold and buying futures)