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If you can borrow or lend at 10 per year what should the

Suppose silver is selling for $18 (spot price) an ounce and it costs $1 an ounce to store silver for 1 year (payable at the end of the year). If you can borrow or lend at 10% per year, what should the one-year futures price of silver be if there are no riskless profits to be made? What would you do to make riskless profits if the futures price was actually $22? Show how you got your answer.

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Business Management: If you can borrow or lend at 10 per year what should the

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