Range of one-year forward prices of gold


A trader owns gold as part of a long-term investment portfolio. The trader can buy gold for $550 per once and sell gold for $549 per once. The trader can borrow funds at 6% per year and invest funds 5.5% per year. What range of one-year forward prices of gold does the trader have no arbitrage opportunities?

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Finance Basics: Range of one-year forward prices of gold
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