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The price of gold is currently 5000 SEK per gram. The forward price for delivery in one year is 7000 SEK. An arbitrageur can borrow
- The price of gold is currently 5000 SEK per gram. The forward price for delivery in one year is 7000 SEK. An arbitrageur can borrow and lend money at 10% per annum. What should the arbitrageur do? Assume that the cost of storing gold is 1000 SEK.
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Investments An Introduction
Authors: Herbert B Mayo
11th Edition
1133936520, 9781133936527
