Question: ken: Borrow money to buy spot. Simultaneously sell the futures. While carrying the spot asset, some income might be received. At maturity of the futures

ken: Borrow money to buy spot. Simultaneously sell the futures. While carrying the spot asset, some income might be received. At maturity of the futures contract, use the spot to deliver on the futures contract.

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Cash and Carry arbitrage seeks to exploit pricing inefficiencies between spot and future... View full answer

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