The one-year futures price of gold is $1,213 per oz. (i.e., the futures price on a contract that expires in one year). The spot price is $1,152 per oz. and the continuous risk-free rate is 2.17% per annum. The storage costs for gold are $2 per oz. payable in arrears and we assume gold provides no income. 

What is the arbitrage profit per 100 oz. of gold?

Answer rating: 100% (QA)

Theoretical Futures Price Spot Priceeriskfree ratetStorage Cost Payable in Arrears Where e const... View the full answer