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Consider three month futures (not options) contract with the current market futures price of (F0) = $25, the current market spot price (S0) = $23,
Consider three month futures (not options) contract with the current market futures price of (F0) = $25, the current market spot price (S0) = $23, and the risk free rate of (r) = 5% per annum. Assume that the asset can be sold short. Is there riskless arbitrage strategy available in 3 months? If yes, describe the strategy and compute the profit.
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