The current price of gold is $1,280 per ounce. The storage costs are $24 per ounce per year payable quarterly in advance. Assume that interest rates are 10% per annum for all maturities. Calculate the futures price of gold for delivery in nine months.
Current price of gold ($/oz)			$1,280.00
Storage costs ($/oz/year)			$24.00
Frequency of payments (months)			3
Time to maturity of contract (months)			9
Risk-free rate (per annum)			10%
What is the present value of the storage costs for the nine months of the futures contract?
What is the futures price of the contract?