Given the Following Information,calculate the Expected Arbitrage Profit or Loss

question 51

Multiple Choice

Given the following information,calculate the expected arbitrage profit or loss from buying an ounce of gold today for $553 and selling a futures contract that matures in six months' time at a price of $570.Assume interest rates are 10% p.a. ,insurance costs are $20,the risk factor is 5 per cent on the cost of gold,and projected gold production over the next 12 months is 5000 ounces.

• A)$0
• B)($31)
• C)$17
• D)$31

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Definitions:

Action Potential

A rapid increase and decrease in the voltage across a cellular membrane due to the movement of ions, allowing neurons to transmit signals.

Electrical Charge

A fundamental property of matter that causes it to experience a force when placed in an electromagnetic field, categorized into positive and negative types.

Millivolts

A unit of electric potential and electromotive force equal to one thousandth of a volt, commonly used in various electrical and physiological measurements.

Neural Impulse

An electric signal that travels along neurons, facilitating communication within the nervous system.