Today's spot price of gold is $1,600 per ounce.The continuously compounded interest rate is 5 percent per year.The quoted six-month forward price for gold is $1,650.
-The arbitrage profit that you can make today by trading one forward contract and other securities is:
A) $5.08
B) $9.26
C) $8.07
D) $9.38
E) None of these answers are correct.
Correct Answer:
Verified
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