Futures Contract
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Anyone can borrow or lend cash for 1% a month, compounded monthly. Prices for silver are listed below (see attachment).
a. This market is not in equilibrium. How could you earn the largest possible arbitrage profit, assuming that the arbitrate opportunity is going to disappear within a few minutes as other trader catch on?
b. What would be your per oz. profit?
https://brainmass.com/business/futures/futures-contract-equilibriums-35460
Solution Summary
This is a solution to a two-part short answer finance problem involving a Futures Contract Compounded Monthly.
$2.49