Question: Please use EXCEL to solve this question and show the formula, THANKS! Show your answers along with the formula and steps you used for each

Please use EXCEL to solve this question and show the formula, THANKS!Please use EXCEL to solve this question and show the formula, THANKS!

Show your answers along with the formula and steps you used for each question. The Spot price of gold is $250 per oz: 90-day custodian fee (storage and insurance, due at the beginning of the period) $4 per oz; The risk free interest rate is 6% pa. The size of the futures contract is 100 oz. Use 30/360 day count convention and simple interest rate. A) Ans: A. Calculate the arbitrage-free price of a gold futures contract that expire in 90 days. (1 point) B. Illustrate how an arbitrage profit can be made if the future contract is B) Ans: price at $260 per oz and calculate the arbitrage profit. (2 point) C. Illustrate how an arbitrage profit can be made if the future contract is price at $250 per oz and calculate the arbitrage profit.(2 point) C) Ans

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