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The spot price of gold today is $1,507 per troy ounce, and the futures price for a contract maturing in seven months is $1,548 per

The spot price of gold today is $1,507 per troy ounce, and the futures price for a contract maturing in seven months is $1,548 per troy ounce. If Golddy Plc puts on a futures hedge today and lifts the hedge after five months. a) Calculate the cost of carry for gold.

b) If the spot price of gold in five months time turns out to be $1,520. What will be the futures price five months from now? c) How much is the basis in five months time?

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