1. Abby, Braylen, Chase, and Davis are trading futures contracts. Identify trading volume and open interest for each traded contract at the end of the following sequence of transactions:
a. Abby buys three October silver futures from Braylen
b. Chase sells seven December silver futures to Braylen
c. David buys ten October silver futures from Chase
d. Braylen sells two December silver futures to Abby
e. Abby sells one October silver future to Chase
2. The spot price of silver is $30 per ounce. The continuously compounded interest rate is 6% per year. The quoted six-month forward price for silver is $32
a. What should the arbitrage-free forward price for silver for a forward contract maturing in six months?
b. How would you arbitrage any mispricing?