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Question 19 (1 point) The spot price of silver (an investment asset) is $30 and the risk-free rate is positive. There is a storage cost
Question 19 (1 point)
The spot price of silver (an investment asset) is $30 and the risk-free rate is positive. There is a storage cost for silver but silver does not provide any income. Which of the following cannot be its forward price?
Question 19 options:
| $40.50 |
| $22.22 |
| $33.00 |
| $33.16 |
Question 20 (1 point)
An exchange rate is 0.7000 and the six-month domestic and foreign risk-free interest rates are 0% and 7% (both expressed with continuous compounding). What is the six-month forward rate?
Question 20 options:
| 0.6527 |
| 0.6759 |
| 0.70 |
| 0.7508 |
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