It is now January. The current annual interest rate is $4\mathrm{.}2\%.$ The June futures price for gold is $$1545\mathrm{.}60,$

while the December futures price is $$1,543.$ Assume the June contract expires in exactly $6$

months and the December contract expires in exactly $12$ months.

a$.$ Calculate the appropriate price for December futures using the parity relationship?

$($Do not round intermediate calculations. Round your answer to $2$ decimal place.$)$

Price for December Futures

b$.$ Is there an arbitrage opportunity here?

Answer Here

Answer Here