Currently, the spot price of silver is $9 per ounce and the one-year futures price
Subject: Business / Finance
Question
10 marks) Currently, the spot price of silver is $9 per ounce and the one-year futures price of silver is $11. The storage costs are $0.24 per ounce per year payable at the end of the year. Assume the simple interest rate is 10% per annum.
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