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A bid-ask spot price of a consumption asset is $1000 - $1020 and its bid-ask 7-month forward price is $1040-$1050. Assume there are no storage
A bid-ask spot price of a consumption asset is $1000 - $1020 and its bid-ask 7-month forward price is $1040-$1050. Assume there are no storage costs. Assume also you can borrow and invest at the same interest rate. Find the range of interest rates that results in arbitrage opportunity
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