According to Coindesk, the price of bitcoin is currently at $58,311.80 (March 19 2021). According to the

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According to Coindesk, the price of bitcoin is currently at $58,311.80 (March 19 2021). According to the CME, the futures bitcoin price on December 17 2021 is $67,060 each. The borrowing cost for Jean is 3% per annum.

Is there an arbitrage opportunity? What should Jean do to take advantage of the opportunity?

Assume that the cost of storing a bitcoin is zero and that it provides no income.

https://www.coindesk.com/price/bitcoin

https://www.cmegroup.com/trading/equity-index/us-index/bitcoin_quotes_globex.html

Related Book For answer-question

Financial Reporting and Analysis

ISBN: 978-0078025679

6th edition

Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon

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Posted Date: Apr 26, 2023 05:25 AM

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According to Coindesk, the price of bitcoin is currently at $58,311.80 (March 19 2021). According to the

Question:

Expert Answer:

Solution Yes there is an arbitrage opportunity for Jean The price of bitcoin is expected to rise from 5831180 on March 19 2021 to 67060 on December 17 ... View the full answer

Financial Reporting and Analysis

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