Question
The spot price of silver is $10 per ounce. The storage costs are $0.12 per ounce per year payable quarterly in advance. Assume that interest
The spot price of silver is $10 per ounce. The storage costs are $0.12 per ounce per year payable quarterly in advance. Assume that interest rates are 8% per annum continuous compounding for all maturities. Calculate the futures price of silver for delivery in nine months.
Question 9 options:
|
| A) $10.62 |
|
| B) $10.71 |
|
| C) $10.52 |
|
| D) $9.33 |
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Practical Finance For Property Investment
Authors: Craig Furfine
1st Edition
036733304X, 978-0367333041
