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Actual futures price of the contract

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Reference no: EM132534926

An analyst for Bloom Ltd, gathered the following information with regards to futures contract:

Current spot-market price of R60

Risk-free interest rate of 8.87% per annum

The six-month future contract is priced at R62.60

Given that the actual futures price of the contract is R59, describe the strategy an arbitrageur could follow.

Reference no: EM132534926

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