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a. If the spot price of gold is $981 per troy ounce, the risk-free interest rate is 5%, and storage and insurance costs are zero,

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a. If the spot price of gold is $981 per troy ounce, the risk-free interest rate is 5%, and storage and insurance costs are zero, what should be the forward price of gold for delivery in one year? (Round your answer to 2 decimal places.) Forward price b. Calculate risk-free arbitrage profits if the forward price is $1,081. (Round your final answers to nearest whole dollar amount.) Profit

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