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The price of gold is currently 500 USD per ounce. The forward price for delivery in one year is 700 USD. An arbitrageur can borrow

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The price of gold is currently 500 USD per ounce. The forward price for delivery in one year is 700 USD. An arbitrageur can borrow money at 10% per annum. What should the arbitrageur do? Assume that the cost of storing gold is zero and that gold provides no income

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