2. (3 sub-questions) A commodity market gets temporarily messed up because of some pandemic. The following table shows current prices of one crude oil barrel in the spot and futures market. Current interest rate is 5%. The storage cost is $1 per barrel per year and there is no convenience yield.

Spot		Futures (matures in 1 year)
Last Price	$50	Last Price	$20
Ask	$52	Ask	$25
Bid	$48	Bid	$15

1. Calculate the amount of possible arbitrage profit. State clearly the buy and sell transactions in both spot and futures markets.

2. This crude oil futures contract delivers the actual crude oil to the buyer. However, you receive a sudden phone call from your friend that the delivery of oil in the futures market is going to be delayed by several weeks due to the pandemic. On the other hand, cash payments will be made without delay. Would this situation affect the arbitrage transaction in part a? Explain.