Question
The current spot price for wheat (per bushel) is $11. The theoretical 6 months forward price is $11.50. The observed (in the market) 6 months
The current spot price for wheat (per bushel) is $11. The theoretical 6 months forward price is $11.50. The observed (in the market) 6 months forward price is $12. Does this represent an arbitrage opportunity? If so, how would you take advantage of the arbitrage?
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Financial Institutions Management
Authors: Anthony Saunders, Marcia Cornett
8th Edition
0078034809, 978-0078034800
