Investors often use futures contracts to hedge against price fluctuations in commodities. A futures contract is an agreement to buy or sell an asset at a predetermined price on a specified future date. In this context, it is essential to understand the pricing of futures contracts.

Consider a commodity currently priced at $100 per unit, with an expected risk-free rate of 5% and no storage costs. What is the fair price of a futures contract that expires in one year?