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first answer box choices: 4.600,4.655,5.389,5.012 second:shown picture third: .10,.73,.51,.16 William LeGrand who actively trades commodities has identified a potential mispricing in the market. The current

first answer box choices: 4.600,4.655,5.389,5.012
second:shown picture
third: .10,.73,.51,.16
image text in transcribed
image text in transcribed
William LeGrand who actively trades commodities has identified a potential mispricing in the market. The current spot price of a pound of copper is $4.60. The monthly risk free rate is 0.15%. Given the risk free rate and the current spot price, the only price that can hold for a futures contract that matures in 8 months is $ Select If the 8-month futures price is quoted at $4.76, William Select The resulting gain/loss will be $ Select William LeGrand who actively trades commodities has identified a poten The current spot price of a pound of copper is $4.60. The monthly risk f rate and the current spot price, the only price that can hold for a futures $ [Select] If the 8-month futures price is quoted at ] Select ] cannot take advantage of the situation since there is no opportunity for arbitrage can take no action and earn a riskless profit can take advantage of the arbitrage and lock in a loss can sell gold and buy silver to hedge against copper can take advantage of the arbitrage situation and lock in a riskless profit Question 3

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