It is now january the current interest rate is 68 the june


it is now January. The current interest rate is 6.8%. The June futures price for gold is $1557.60, while the December futures price is $1,558. Assume the June contract expires in exactly 6 months and the December contract expires in exactly 12 months.

1. Calculate the appropriate price for December futures using the parity relationship?

2. is there an arbitrage opportunity here?

 

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Finance Basics: It is now january the current interest rate is 68 the june
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