The price of gold is currently $745 per ounce. Forward contracts are available to buy or sell gold at $929 for delivery in one year. An arbitrageur can borrow money at 10% per annum. What is the arbitrage profit?Answer
The price of gold is currently $745 per ounce. Forward contracts are available to buy or sell gold at $929 for delivery in one year. An arbitrageur can borrow money at 10% per annum. What is the arbitrage profit?Answer