Silver price today december 7th 2015 is 1400ounce each


Silver price today, December 7th, 2015 is $14.00/ounce. Each Futures contract has 5,000 ounces. Today’s interest rate for one-year rc = 5.00%. a. What is the Fair price of one Dec 7th 2016 silver futures contract? b. If the same silver contract is offered at $76,500/contract, show how a riskless arbitrage is possible.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Silver price today december 7th 2015 is 1400ounce each
Reference No:- TGS01252282

Expected delivery within 24 Hours