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The current spot price for wheat (per ton) is $170. The theoretical 6 moth forward price is $172.50. The observed month forward price is $180.
The current spot price for wheat (per ton) is $170. The theoretical 6 moth forward price is $172.50. The observed month forward price is $180. Does this represent an arbitrage opportunity? If so, how much you take advantage of the arbitrage? please show calculation part.
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