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Is there an arbitrage opportunity in any of the following situations? Please show clearly why or why not? a. The spot price of gold is

Is there an arbitrage opportunity in any of the following situations? Please show clearly why or why not?

a. The spot price of gold is US1,898.50 per ounce, the 6-month forward rate is US$1,910 per ounce and the US$ interest rate is 0.11% per annum. There is no income or storage costs for gold.

b. The spot price of gold is US$1,895.50 per ounce, the 6-month forward rate is US$1,850 per ounce and the 6-month US$ interest rate is 0.11% per annum. There is no income or storage costs for gold.

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