Again, suppose silver is currently selling at $4.23 per ounce in the spot market. Assume as well that the current risk-free rate (implied repo rate) is 3.75% and that silver contracts involve 5000 ounces each. Also, now assume that carrying costs (storage and insurance) for silver are accessed at .31% (0.0031) per ounce price.

a. Including carrying costs, what should the 6 month (180 days) silver futures contract be selling for according to the cost-of-carry model? ($21,600 (at a price of $4.32/oz.) )

b. If the 6 month (180 day) futures contract for silver is selling for $4.18 per ounce, what should you, as an investor, do? (reverse cash-and-carry arbitrage needed)

c. What arbitrage profit will you realize if you decide to work with two (2) silver contracts? ($1293.13 )

Please answer without the use of excel. Answers are in parenthesis I just need to know how to solve.