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What is the futures price for gold for a six-month contract

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Reference no: EM131751121

(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

Reference no: EM131751121

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