On january 29 1987 you could buy a march 1987 silver, Ask an Expert

Finance

On January 29, 1987, you could buy a March 1987 silver contract for $5.610 per ounce and at the same time sell a March 1988 contract for $6.008 an ounce.

a) Exactly what would you have done had you taken these positions?

b) If the annual riskless rate of interest were 8%, would the position be profitable? Why or why not?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92003116

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