The forward price (F) of a contract on an asset with neither carrying costs nor convenience yield is the current spot price of the asset (S0) multiplied by 1 plus the appropriate interest rate between the initiation of the contract and the delivery date of the asset. Derive this relationship by comparing the cash flows that result from the following two strategies:

Strategy 1: Buy silver on the spot market today and hold it for one year. 

Strategy 2: Take on a long position in a silver forward contract for delivery in one year.

Assume that silver is an asset with neither carrying costs nor convenience yield.