What is fair value of futures contract on silver maturing

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1. Silver currently trades for $99 per ounce. The cost to store sliver is 0.7% per year continuously compounded. The riskless rate of interest is 5.9% per year c.c. What is the fair value of a futures contract on silver maturing in 6 months?

2. DPS calculation Warr Corporation just paid a dividend of $1.5 a share (that is, D0 = $1.5). The dividend is expected to grow 12% a year for the next 3 years and then at 4% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to two decimal places. D1 = $ D2 = $ D3 = $ D4 = $ D5 = $

Reference no: EM132045967

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