=+ (c) Suppose one agrees to enter into a 12-month forward contract on 100 tonnes of feed
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(c) Suppose one agrees to enter into a 12-month forward contract on 100 tonnes of feed wheat with the forward price £14,500 when the wheat price is £145.05 per tonne and the interest rate is 0.5% p.a. with continuous compounding. What arbitrage opportunities does this create? Demonstrate them via an appropriate strategy.
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Sultan Ghulam Dastgir
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