4. You are examining the silver market on February 1. Given that silver is largely held as an investment asset, has limited storage costs, and no intermediate income, the futures pricing formula implies that F0=S0ert. You observe a spot price of $22.70 per ounce, one-month LIBOR of 2.0%, two-month LIBOR of 2.1%, and six-month LIBOR of 2.4% (all continuously compounding, expressed as annual rate). Using the futures pricing formula, calculate the arbitrage-free futures prices for the March, April, and August contracts that have March 1, April 1, and August 1 delivery dates, respectively. Now, given your futures price for the August contract, show that the potential arbitrage trade (i.e., similar to what you did for problem 1 above) produces no net cash flows. 4. You are examining the silver market on February 1. Given that silver is largely held as an investment asset, has limited storage costs, and no intermediate income, the futures pricing formula implies that F0=S0ert. You observe a spot price of $22.70 per ounce, one-month LIBOR of 2.0%, two-month LIBOR of 2.1%, and six-month LIBOR of 2.4% (all continuously compounding, expressed as annual rate). Using the futures pricing formula, calculate the arbitrage-free futures prices for the March, April, and August contracts that have March 1, April 1, and August 1 delivery dates, respectively. Now, given your futures price for the August contract, show that the potential arbitrage trade (i.e., similar to what you did for problem 1 above) produces no net cash flows