Gold is trading at $1100, but one year Gold contracts are trading at $1450. The CME defines the Gold contract as 100 ounces/c, $/c, $12,000, $9,000. Your commodities broker quotes you $18/ ounce storage and insurance, $300/ounce borrowing fee on gold, and 3.5% on cash balances - all per annum. JQ Investor decides to arbitrage this price difference using 500 ounces of Gold. gold JQ must (BUY/SELL)| and (BUY/SELL) a total of gold contracts. If JQ takes this arbitrage right to delivery he will make a profit (loss) of $ The cost of carry is $ lounce The futures price at which arbitrage is no longer profitable is $ Gold is trading at $1100, but one year Gold contracts are trading at $1450. The CME defines the Gold contract as 100 ounces/c, $/c, $12,000, $9,000. Your commodities broker quotes you $18/ ounce storage and insurance, $300/ounce borrowing fee on gold, and 3.5% on cash balances - all per annum. JQ Investor decides to arbitrage this price difference using 500 ounces of Gold. gold JQ must (BUY/SELL)| and (BUY/SELL) a total of gold contracts. If JQ takes this arbitrage right to delivery he will make a profit (loss) of $ The cost of carry is $ lounce The futures price at which arbitrage is no longer profitable is $ Gold is trading at $1100, but one year Gold contracts are trading at $1450. The CME defines the Gold contract as 100 ounces/c, $/c, $12,000, $9,000. Your commodities broker quotes you $18/ ounce storage and insurance, $300/ounce borrowing fee on gold, and 3.5% on cash balances - all per annum. JQ Investor decides to arbitrage this price difference using 500 ounces of Gold. gold JQ must (BUY/SELL)| and (BUY/SELL) a total of gold contracts. If JQ takes this arbitrage right to delivery he will make a profit (loss) of $ The cost of carry is $ lounce The futures price at which arbitrage is no longer profitable is $ Gold is trading at $1100, but one year Gold contracts are trading at $1450. The CME defines the Gold contract as 100 ounces/c, $/c, $12,000, $9,000. Your commodities broker quotes you $18/ ounce storage and insurance, $300/ounce borrowing fee on gold, and 3.5% on cash balances - all per annum. JQ Investor decides to arbitrage this price difference using 500 ounces of Gold. gold JQ must (BUY/SELL)| and (BUY/SELL) a total of gold contracts. If JQ takes this arbitrage right to delivery he will make a profit (loss) of $ The cost of carry is $ lounce The futures price at which arbitrage is no longer profitable is $