Question: Answer for Question 3, 4 and 5: 3. I googled the silver price today (Feb 15th,2023 ) in Canada is $21.66 /ounce and the storage
Answer for Question 3, 4 and 5:

3. I googled the silver price today (Feb 15th,2023 ) in Canada is $21.66 /ounce and the storage cost is 0.32 / ounce per annual payable quarterly. The risk-free rate is 6%. Find the future price of silver for delivery in 9 months. 4. The exchange rate between USD and CD is 1.34 and the risk-free rate in US is 4.5% and the 1 year forward exchange rate is 1.29. Find the risk-free rate in Canada. What is general relationship between the exchange rate and interest rate? 5. A stock is expected to pay a dividend of $3 per share in 2 months and in 5 months. The current price of the stock is $100. The risk-free rate is 6%. You have a short position in a 6-month forward contract. (i) Find the current forward price. What is the value of this forward contract? (ii) What is the value of this forward contract four month later if the stock price is $90
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
