Would the position be profitable why or why not

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Reference no: EM131247256

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?

Reference no: EM131247256

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