Is there an arbitrage opportunity here

Assignment Help Financial Accounting

Reference no: EM13839735

It is now January. The current interest rate is 4%. The June futures price for gold is $1,646.30, while the December futures price is $1,651. Is there an arbitrage opportunity here? If so, how would you exploit it?

Reference no: EM13839735

Questions Cloud

What individual behaviors might be influenced by television : What individual behaviors might be influenced by television

Incomes rise for both low-income and high-income workers : If incomes rise for both low-income and high-income workers, but rise less for the high-income workers.

Assume the natural rate of unemployment : Assume that b=1/2 and that initially the real interest rate is equal to the marginal product of capital at 3%. As well, assume that v=2 and that the inflation rate last period was 2%. Assume the natural rate of unemployment is 5.5%. The Sequester is ..

Calculate the empirical and molecular formula : Calculate The empirical and molecular formula

Is there an arbitrage opportunity here : It is now January. The current interest rate is 4%. The June futures price for gold is $1,646.30, while the December futures price is $1,651. Is there an arbitrage opportunity here? If so, how would you exploit it?

Viewed as a fundamental building block : Which of the following is viewed as a fundamental building block of the U.S. economic way of thinking?

Full range of possible events and responses-economic theory : Economic theory offers ______ about the full range of possible events and responses, which can prevent _______ about how households will respond to changes in prices or incomes.

Why did auasb propose the changes : Compare the proposed Australian changes to the auditors' report with the auditors' report on a large listed FTSE100 company from the UK and a large listed FORTUNE100 company from the US. Present your comparison using a table or a figure/chart.

What affirmative defenses can johnny raise : Johnny, the CEO of Plastic Spoon Inc., is in a bit of a bind. His daughter was kidnapped. The kidnappers are demanding a hefty ransom. Unfortunately for Johnny, he cannot afford the ransom. So, Johnny withdraws the ransom money from Plastic Spoon's a..

User Account

All Pages