The spot price of gold is $250. The risk-free rate is 3% and the storage cost is 0.75% (both continuously compounded). A corporate client, with a low credit rating, has been offered a choice between borrowing cash and borrowing gold by a bank. For a borrowing period of one year, the bank proposes to lend gold at 4.5% per annum or lend cash at 6% per annum (both discretely compounded). Which of the following statements is correct?

		A) The one-year forward price of gold is $121.69.
		B) If gold was borrowed at a rate 6.00% (discretely compounded) then the corporate client would be indifferent between borrowing gold or cash from the bank.
		C) The one-year forward price of gold is $259.55.
		D) The corporate client prefers borrowing gold over borrowing cash.