The price of gold is currently $1,200 per ounce. forward contracts are available to buy or sell gold at $1,400 per ounce for delivery in one year. an arbitrageur can borrow 1 money at 5% per annum. what should the arbitrageur do? assume that the cost of storing gold is zero and that gold provides no income.

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I was stuck on the same question. When I find out I’ll tell you immediately!!!