The price of gold is currently 1400 per ounce the forward, Ask an Expert

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The price of gold is currently $1,400 per ounce. The forward price for delivery in one year is $1,500. An arbitrageur can borrow money at 4% per annum. What should the arbitrageur do? Assume that the cost of storing gold is zero and that gold provides no income.

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Financial Management, Finance

Category:- Financial Management
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