Question
A 1-year gold futures contract is selling for $1,720. Spot gold prices are $1,652 and the 1-year risk-free rate is 4%. The arbitrage profit implied
A 1-year gold futures contract is selling for $1,720. Spot gold prices are $1,652 and the 1-year risk-free rate is 4%. The arbitrage profit implied by these prices is _____________.
A.) $.05
B.) $1.92
C.) $3.40
D.) $1.07
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Financial Management Theory and Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
2nd Canadian edition
176517308, 978-0176517304
