Question
Assume that the cost of carrying silver includes storage costs. On March 7, 2017 the July 2017 futures contract traded at $ 17.585 per ounce
Assume that the cost of carrying silver includes storage costs. On March 7, 2017 the July 2017 futures contract traded at $ 17.585 per ounce (assume it is a 4-month contract), spot traded at $ 17.530 per ounce. Storage costs per ounce are about 0.2% of spot annually. Therefore, the implied annualized interest rate is ?
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Introduction To Corporate Finance
Authors: William L. Megginson, M.D. Lucey Brian C., Scott J. Smart, Scott B. Smart, Bill Megginson
1st Edition
184480562X, 9781844805624
