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Determining the value of the contract

Suppose you have a short position in a forward contract for 500 troy ounces of gold at $920. The contract has 10 months to expire. Currently, the spot price of gold is $922, and the risk-free rate and the rate of storage cost are 8% and 3% per annum, respectively. Both rates are continuously compounded. What is the value of the contract to you?

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## Q : Determining the firm net cash flow

A firm agrees to accept annual payments on a $1,000,000 loan with a fixed interest rate of 8% in exchange for making the annual payments on a loan with floating rate payments based on LIBOR. Payments are interest only with principal due in 10 year