Commodity price and interest rate information: Spot price for commodity Futures price for commodity expiring in 1 year. One-year interest rate Determine the actions that will realize an arbitrage opportunity. Select one: a. Buy futures, buy spot and borrow money. b. Sell futures, buy spot and invest money. O c. Sell futures, buy spot and borrow money. Od. Buy futures, sell spot and invest money. R45 R55 8%

Commodity price and interest rate information: Spot price for commodity Futures price for commodity expiring in 1 year. One-year interest rate Determine the actions that will realize an arbitrage opportunity. Select one: a. Buy futures, buy spot and borrow money. b. Sell futures, buy spot and invest money. O c. Sell futures, buy spot and borrow money. Od. Buy futures, sell spot and invest money. R45 R55 8%

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter7: International Arbitrage And Interest Rate Parity

Section: Chapter Questions

Problem 37QA

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12.
Subject:- finance
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3b) Please check picture.
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