2. Spot-Futures Arbitrage (LO3, CFA6) Suppose silver is currently trading at $17 per troy ounce.

You are evaluating a four-month carry trade opportunity using silver. The appropriate interest rate is 3 percent, and the carrying cost is $.55 per ounce per month. If the current market price of a four-month futures contract on silver is $21 per troy ounce, calculate the potential carry trade profit per ounce.