Alloyum Costs $0

Multiple Choice

Alloyum costs $0.10 per month to store (which is paid up front) but gives a convenience yield of $0.12 per month (which is received on the maturity date) .If Alloyum's spot price S is $200 per ounce and the continuously compounded interest rate r is 5 percent per year,then the six-month forward price is:

A) $204.96
B) $210.03
C) $205.05
D) $224.93
E) None of these answers are correct.