Question
The spot price of silver is $20 per ounce. The storage costs are $0.40 per ounce per year payable quarterly in advance. Assuming that interest
The spot price of silver is $20 per ounce. The storage costs are $0.40 per ounce per year payable quarterly in advance. Assuming that interest rates are 7% per annum for all maturities, calculate the futures price of silver for delivery in nine months.
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Derivatives Markets
Authors: Robert L. McDonald
2nd Edition
032128030X, 978-0321280305
