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The wheat prices are quoted at Rs. 160 per 10kg today. The three-months forward contract is quoted as Rs. 145 per 10 kg. The investor
The wheat prices are quoted at Rs. 160 per 10kg today. The three-months forward contract is quoted as Rs. 145 per 10 kg. The investor can borrow money at continuously compounded rate of 8.16% per annum. If the storage cost is Rs. 10 per 10 kg, find out what would be the arbitrage profit if arbitrage is possible
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