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You are given the following data on gold markets. What is the level of arbitrage profits that can earned? Current spot price of gold =

You are given the following data on gold markets. What is the level of arbitrage profits that can earned?

Current spot price of gold = $1,275

Futures price for a 1-year contract = $1,300

1-year risk free interest rate = 3%

Assume that there are no carrying costs or yield on buying/selling gold.

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