Question: please solve , I'll rate answer (10 points} Ayse plans to purchase some silver in two years. She makes a. forward contract with Sahh in

please solve , I'll rate answer

please solve , I'll rate answer (10 points} Ayse plans to purchase

(10 points} Ayse plans to purchase some silver in two years. She makes a. forward contract with Sahh in order to hu}P 10,000 ounces of silver from a delivery price of $28 per ounce at t = 2. This price was determined so that there were no arbitrage opportunities for an}.r party. (a) [5 points) Assuming an eective interest rate of 5.83%, calculate the spot price at time 0, 83. (b) [5 points] One year passes and 51 = 27. A third party, Elmer, would like to pur- chase this forward contract. For this to be a \"fair\" interaction at this time {t = 1), how much will Omer pay and to whom

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