What should be the price of gold futures contract

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Reference no: EM131575398

The current price of gold is $300 per ounce. The risk-free interest rate is 6 percent. (a) What should be the price of a gold futures contract that expires in 90 days? (b) Illustrate how an arbitrage transaction could be executed if the futures contract is priced at $306 per ounce.(c) Illustrate how an arbitrage transaction could be executed if the futures contract is priced at $303 per ounce.

Reference no: EM131575398

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