Calculate the fair delivery price for the forward contract

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For each of the followings, calculate the fair delivery price for the forward contract.

a) A forward contract to buy 1,000 ounces of gold in two year's time. The spot gold price is $1226 per ounce, the riskless interest rate is 6% p.a. and storage/security costs for gold bullion are 4%

Reference no: EM133002184

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