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Describe an arbitrage trading strategy

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The spot price of gold is $1000 per oz. The one-year risk-free rate is 2% continuously-compounded. There are no costs or benefits of holding gold. If the one-year forward price of gold is $1030, describe an arbitrage trading strategy that would allow you to profit.

Note: I would appreciate it if any of you guys could show the equation so I can understand the problem.

Reference no: EM131868733

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