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Business, 30.10.2021 02:50 mrgandollins5222

A trader owns gold as part of a long-term investment portfolio. The trader can buy gold for $570 per ounce and sell gold for $569 per ounce. The trader can borrow funds at 6% per year and invest funds at 5.5% per year. (Both interest rates are expressed with annual compounding.) What is the lower bound for the one-year forward prices of gold that will ensure no arbitrage opportunities

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A trader owns gold as part of a long-term investment portfolio. The trader can buy gold for $570 per...
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