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Why are the spot and futures so close when they are about to be delivered?
The closer the futures price is to the delivery date, the closer it is to the spot price.

There are many kinds of arbitrage. I don't know what kind of arbitrage you mean.

This arbitrage can make money.

It has been falling. Stocks fall to lose money, futures fall to make money.

Use the money earned in futures to make up for the loss of stocks. Not all have failed.