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 money at 10% per annum. Assume continuous compounding.

Clearly outline the trading strategy to exploit the profitable arbitrage opportunity, if any. What is the profit (per ounce)?

- How does your answer change if storage costs of 2% per annum are incurred? What is the profit (per ounce)?

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

answer; how many employees will be needed for jobs in the coming period;