What should the arbitrageur do

Reference no: EM132051175

Question: The price of gold is currently $1,400 per ounce. The forward price for delivery in one year is $1,500. An arbitrageur can borrow money at 4% per annum. What should the arbitrageur do? Assume that the cost of storing gold is zero and that gold provides no income. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132051175

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