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What would be her total cost for that position

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Question - The current four-month forward price of silver is 25.168 per ounce. The interest rate is 2%.

a. What is the current spot price of silver based on this information?

b. Today, Mary enters takes a short position in 5,000 forward contracts with four months to expiration. What would be her total cost for that position?

c. If the actual spot price of silver in four months is 23.934 per ounce, what would Mary's total profit be at that time?

Reference no: EM133031067

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