Question
According to Coindesk, the price of bitcoin is currently at $58,311.80 (March 19 2021). According to the CME, the futures bitcoin price on December 17
According to Coindesk, the price of bitcoin is currently at $58,311.80 (March 19 2021). According to the CME, the futures bitcoin price on December 17 2021 is $67,060 each. The borrowing cost for Jean is 3% per annum.
Is there an arbitrage opportunity? What should Jean do to take advantage of the opportunity?
Assume that the cost of storing a bitcoin is zero and that it provides no income.
https://www.coindesk.com/price/bitcoin
https://www.cmegroup.com/trading/equity-index/us-index/bitcoin_quotes_globex.html
Step by Step Solution
3.38 Rating (160 Votes )
There are 3 Steps involved in it
Step: 1
Solution Yes there is an arbitrage opportunity for Jean The price of bitcoin is expected to rise from 5831180 on March 19 2021 to 67060 on December 17 ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Reporting and Analysis
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
6th edition
9780077632182, 78025672, 77632184, 978-0078025679
