: A mining company and jewellery producer engage in a commodity swap, based on a benchmark silver price of $$37/$ounce $(45,000$ ounces$).$ The mining company will make fixed payments, whereas the jewellery producer is responsible for the variable payments. At the end of the $5$ years, the silver prices were as follows $($assuming a discount rate $=6\%)$:

Years $12345$

Silver prices $($$$)35\mathrm{.}8037\mathrm{.}2038\mathrm{.}9536\mathrm{.}2041\mathrm{.}10$