The current price of silver is $$30$ per ounce. The storage costs are $$0\mathrm{.}12$ per ounce per quarterly payable in advance. Compute the forward price of $1$ ounce of silver for delivery in $9$ months. The current continuously compounded risk$-$free rate is $=2\mathrm{.}66\%$ for all maturities. 

Answer rating: 100% (QA)

To compute the forward price of 1 ounce of silver for delivery in 9 months we can use ... View the full answer