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A 6-month futures gold contract is currently priced at $29. The spot price is $30 and the transportation costs are 1.70% per annum. The continuously
A 6-month futures gold contract is currently priced at $29. The spot price is $30 and the transportation costs are 1.70% per annum. The continuously compounded risk-free rate is 5%. To inititate arbitrage trade, an investor has to:
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