Today the spot price of gold is 700oz the market price of a


Today, the spot price of gold is $700/oz. The market price of a 7-month gold futures contract today is $750. The riskfree rate is 9% p.a. The storage cost of gold is 1% p.a. of the gold price and is payable over the life of storage. Show step by step how to execute an arbitrage and determine the size of the profit.

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Financial Management: Today the spot price of gold is 700oz the market price of a
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