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A 1-year futures contract on 100oz of gold has a spot price of $1900 per ounce. The costs to store the gold is $3.00 per
A 1-year futures contract on 100oz of gold has a spot price of $1900 per ounce. The costs to store the gold is $3.00 per ounce per year. The risk-free rate is 10% annually for all maturities. The equilibrium price is $2,102. If the future price of the contract is $2,000, what arbitrage opportunity is achievable today, before and at maturity
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