What arbitrage profit would you earn

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Question: The 7 month gold futures contract is currently trading at $1658.86

Assume that the risk free rate is 3.7% p.a. and the current spot price, So, is $1674. There are no holding costs.

An arbitrage exists. Therefore, if you traded 1 contracts, where 1 contract = 100 ounces, what arbitrage profit would you earn?

(Please show your answer to two decimal places)

Reference no: EM133430154

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