Intro You own a small jewlery boutique and use precious metals in your production. To maintain a relatively stable inventory of precious metals you trade regularly in the futures market. Today is January 1st and you are about to enter long in 3 platinum futures contract with delivery in September. Suppose storage costs for platinum are fixed at $10 per ounce and paid at the end of each quarter (March, June, September, December). Suppose further that the risk-free rate is 3% for all maturities and it is continuously compounded. The platinum futures contract has a size of 50 ounces. Part 1 Attempt 1/1 for 10 pts. If platinum spot price today is 1,261 per ounce, what is the no-arbitrage futures price (per ounce) of platinum today? 1,979.88 1,319.92 1,259.47 1,715.9 659.96 Submit Part 2 Attempt 1/1 for 10 pts. Suppose that on January 1st the actual futures price for platinum was sufficiently close to the no-arbitrage price and you decided to enter long 3 platinum futures contracts. If today is April 1st and that the platinum spot price equals 1,197.95, what is the value of your 3 platinum contracts? -3,449 -70,894 -85,139 -12,381 12,381 Submit Part 3 1 Attempt 1/1 for 10 pts. Suppose that today on April 1st you also realized that you actually have an excess of 100 ounces of platinum in your inventory and that you only need to take delivery of 50 ounces of platinum in September. You decide to enter short 2 platinum futures contracts with delivery in September. If the futures price of platinum (per ounce) is 1,297.94, what is the value of your remaining position in platinum futures? -12,381 -6,293 -18,470 Submit