Question
ou are given the following data on gold markets. What is the level of arbitrage profits that can earned? Current spot price of gold =
ou are given the following data on gold markets. What is the level of arbitrage profits that can earned?
Current spot price of gold = $1,275
Futures price for a 1-year contract = $1,300
1-year risk free interest rate = 3%
Assume that there are no carrying costs or yield on buying/selling gold.
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International Financial Reporting And Analysis
Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn
8th Edition
978-1473766853, 1473766850
