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Suppose that the spot price for gold is $300 per ounce. If the storage costs are 0.02 per year and the riskless rate is 0.07

  1. Suppose that the spot price for gold is $300 per ounce. If the storage costs are 0.02 per year and the riskless rate is 0.07 per year: (4 pts.)
    1. What is the forward price of gold after one year?
    2. What would happen if the price of gold were greater than what you calculated in section (a)?

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