A one-year gold futures contract is selling for $1,558. Spot gold prices are $1,500 and the one-year risk-free rate is 2%. According to spot-futures parity, what should be the futures price? With spot-futures parity the futures price would be $1530. Expiration price (using spot-future parity) = selling price x (1 + risk-free rate)time to expire EP = 1,500 x (1 + 2%)1 EP = 1,500 x (1 + .02) EP = 1,500 x 1.02 EP = 1,530 What risk-free strategy can investors use to take advantage of the futures mispricing, and what will be the profits on the strategy?