It is now January. The current interest rate is 5%. The June futures price for gold is

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It is now January. The current interest rate is 5%. The June futures price for gold is $946.30, whereas the December futures price is $960.00. Is there an arbitrage opportunity here? If so, how would you exploit it?

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jan 04, 2013 08:04 AM

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It is now January. The current interest rate is 5%. The June futures price for gold is

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According to the parity relation the proper price for D...View the full answer

Investments

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