It is now January. The current interest rate is 2%. The June futures price for gold is

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It is now January. The current interest rate is 2%. The June futures price for gold is $1,500, whereas the December futures price is $1,510. Is there an arbitrage opportunity here? If so, how would you exploit it?

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Investments

ISBN: 978-0077861674

10th edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: May 04, 2017 05:55 AM

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It is now January. The current interest rate is 2%. The June futures price for gold is

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According to the parity relation the proper price for De...View the full answer

Investments

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