1. Suppose the gold spot price is $1700/oz, the 1-year forward price is 1760.54, and the continuously compounded risk-free rate is 4%. Calculate the following:

   a. the lease rate

   b. the return on a cash-and-carry if gold cannot be loaned

c. the return on a cash-and-carry if gold is loaned and it earns the lease rate

Using a financial calculator