On May 31, 2016, the exchange rate of U.S. dollars for Bitcoins was ?535.592. Three months later on August 31, 2016, the exchange rate was ?572.187. If a Learjet 85 carries a price of $21 million, what is the difference in price a purchaser would pay in Bitcoins if the jet were purchased on August 31 rather than May 31, 2016?

What should be the one-year forward rate in order to prevent any arbitrage?

Answer rating: 100% (QA)

To find the difference in price in Bitcoins for the Learjet 85 purchased on August 31 rather than Ma... View the full answer