The current spot price for one ounce of gold is 900. The continuously compounded risk-free interest rate is 8% for all maturities.

1. a) Find the delivery price on a forward contract for one ounce of gold with delivery date (i) in 1 year, and (ii) in 2 years.

2. b) At time t = 0 Smith enters a 2-year forward contract to buy an ounce of gold (long) and at the same time enters a 3-year forward contract to sell an ounce of gold (short). Find the combined value of Smith's forward contracts at time t = 1 as a function of S1 (the spot price of an ounce of gold at time t = 1).

Please solve this question with detailed steps and explanations.

Thank you in advance