It is now January. The current interest rate is 3%. The June futures price for gold is

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It is now January. The current interest rate is 3%. The June futures price for gold is $1,246.30, while the December futures price is $1,251. Is there an arbitrage opportunity here? If so, how would you exploit it?

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Essentials of Investments

ISBN: 978-0077835422

10th edition

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

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Question Posted: Nov 30, 2017 10:14 AM

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It is now January. The current interest rate is 3%. The June futures price for gold is

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According to the parity relationship the proper price for Dec...View the full answer

Essentials of Investments

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