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What should the arbitrageur do? Assume that the cost of storing gold is zero and that gold provides no income. Nov 16 2015 11:37 AM

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5.33 The price of gold is currently $1,500 per ounce. The forward price for delivery in one year… 1 answer below » 5.33     The price of gold is currently $1,500 per ounce. The forward price for delivery in one year is $1,700. An arbitrageur can borrow money at 10% per annum. What should the arbitrageur do? Assume that the cost of storing gold is zero and that gold provides no income. Nov 16 2015 11:37 AM


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