What should the forward price of 1 kg of cocoa

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In a market, gold is traded at a spot price of SEK 5,21650.00 per kg and in a semester of one year at a price of SEK 5,51592.71 per kg and the cost of storage amounts to 3.73% of the spot price. Furthermore, cocoa is also traded on the spot market at a price of SEK 11.30 per kg. The cost of storing 1 kg of cocoa for 1 year is 7.99% of the spot price. What should the forward price of 1 kg of cocoa in a year be if the law on a price holds?a

Reference no: EM133077806

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