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Pricing a forward contract with dividends

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(Pricing a forward contract with dividends)

The current price ofsilver is $206 per ounce. The storage cost is $1 ounce per year, payable quarterly in advance. Assuming a constant annual interest rate of 9% compounded quarterly, what is the theoretical forward price of silver for delivery in 9 months? Please submit your answer rounded to the nearest integer - for example, if your answer is 19.8, round it to either 20.

Reference no: EM133115387

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