Question a one-year gold futures contract is selling for, Ask an Expert

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Question: A one-year gold futures contract is selling for $1,141. Spot gold prices are $1,200 and the one-year risk-free rate is 2%.

a. According to spot-futures parity, what should be the futures price?

b. What risk-free strategy can investors use to take advantage of the futures mispricing, and what will be the profits on the strategy?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92764834

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