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Suppose the current futures price for delivery of gold in 180 days is $460 per troy oz. The current spot price of gold is $720

Suppose the current futures price for delivery of gold in 180 days is $460 per troy oz. The current spot price of gold is $720 per troy oz. The short-term interest rate is 5% per year. (We can borrow or lend at this rate.) Do all of the following calculations based on a 360-day year.

a) What is the 180-day futures Price?

b) What are the potential annualized arbitrage profits?

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