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A the spot price for gold is 650 the risk-free interest

(a) The spot price for gold is $650. The risk-free interest rate is 5%. What is the futures price for gold for a six-month contract?

(b) The six-month futures price in the market is $682.50. Is there an arbitrage opportunity here? Why? If so how would you exploit it? Explain

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Finance Basics: A the spot price for gold is 650 the risk-free interest

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Finance Basics: A the spot price for gold is 650 the risk-free interest

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