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Business, 18.09.2019 04:30 javonteoshamccaliste

Atrader owns gold as part of a long-term investment portfolio. the trader can buy gold for $450 per ounce and sell it for $449 per ounce. the trader can borrow funds at 6% per year and invest funds at 5.5% per year (both annual compounding). for what range of 1-year forward prices of gold does the trader have no arbitrage opportunities?

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Atrader owns gold as part of a long-term investment portfolio. the trader can buy gold for $450 per...
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