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Based on below settlement price for the contract of Futures Crude Palm Oil (FCPO) in Bursa Malaysia Derivatives, Littex Corp found that the cash price

Based on below settlement price for the contract of Futures Crude Palm Oil (FCPO) in Bursa Malaysia Derivatives, Littex Corp found that the cash price of RM3423 per tonne as at 15th January 2021 is mismatched with the price in March futures. The company plan to create an arbitrage opportunity for March futures for 2000 tonnes of CPO. Assume the cost storage is RM10 per tonne per month, cost of funding is 5.5%. Is the company benefits from the arbitrage strategy?

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