1. Suppose that the current price of gold is $1,734 per oz and that it costs $5 per oz per month to store gold (payable monthly in advance). Suppose also that the term structure is flat with a continuously compounded rate of interest of 6% for all maturities.
   1. Calculate the forward price of gold for delivery in three months.
   2. If the current forward price for gold is $1,775.36 per oz, is there arbitrage opportunity? If so, please explain why there is an arbitrage opportunity and what position (long or short) you would take on the forward market (you do not need to show how to exploit the arbitrage opportunity if any, just say if you would buy or sell forward).

(can you please put the formula you use before plugging the numbers in so i can get clarity because different approaches is what is getting me confused, thank you.