2. a) The current price of platinum is $35 per ounce. The storage costs are $0.60 per ounce per year payable monthly in advance. Assuming that interest rates are 8% per annum for all maturities, calculate the futures price of platinum for delivery in 3 months. (25 marks)

b) Suppose the futures price of platinum turned out to be $35 instead. Is there a potential for arbitrage? If so, calculate the arbitrage profit. (25 marks)