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The current price of silver is $16.2 per ounce. The storage cost is 2.2% per ounce per year on a continuous compounding basis. Assuming that

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The current price of silver is $16.2 per ounce. The storage cost is 2.2% per ounce per year on a continuous compounding basis. Assuming that the risk-free interest rate is 4% per annum with continuous compounding for all maturities, calculate the futures price of silver for delivery in 6 months. Answer: 16.71

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