1. On January 16, 2023, Joan Tam, CFA, believes she has identified an arbitrage opportunity for gold as indicated by the following information: 1. To buy the futures contract and short the spot commodity (borrowing the commodity and selling it with the intention to buy it back in a year). Invest the proceeds for a year and pay $18 borrowing fee. 2. To short the futures contract and buy the spot commodity using a loan at 5.5\% interest. Pay \$12 storage cost. Describe the transactions necessary to take advantage of this specific arbitrage opportunity. Calculate the arbitrage profit. Which of the two strategies would Tam choose? What would be the profit if there were no borrowing fee or no storage cost? (This is not part of the assignment, but to view current gold futures contract prices, please see the following link: https://www.cmegroup.com/markets/metals/precious/gold.quotes.html)