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Suppose that the spot price of gold is $1,000 and the 4-month forward price of gold is 1015. Assume the continuously compouned risk-free rate is

Suppose that the spot price of gold is $1,000 and the 4-month forward price of gold is 1015. Assume the continuously compouned risk-free rate is 3% p.a. Determine and demonstrate an arbitrage strategy. Is your strategy truly risk-free in the real world?j

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