Question: Today is January 1. Forward prices for contracts maturing on April 1 and on October 1 are $103 and $109, respectively. On April 1, the

Today is January 1. Forward prices for contracts maturing on April 1 and on October 1 are $103 and $109, respectively. On April 1, the price of a zero-coupon bond maturing on October 1 is $0.97. Assuming that the underlying interest rate is a constant interest rate, demonstrate one way of making arbitrage profits from these prices.

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