The spot price of gold is $550. The risk-free rate is 2% and the storage cost is 0.95% (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 3.5% per annum or lend cash at 6% per annum (both discretely compounded). Which of the following statements is correct? The corporate client prefers borrowing gold over borrowing cash. The one-year forward price of gold is $217.00. The one-year forward price of gold is $566.47. 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