2. If the quoted 1-year futures price of gold is $1,680, is there an arbitrage opportunity? Answer: Today: Open a long position (buy) a gold futures contract, and meanwhile (short) sell one ounce gold with price of $1,700 and deposit the proceeds in the bank; One year later: At settlement date, pay $1,680 to fulfill the futures contract, and then use delivered one ounce gold to close short position of gold; This strategy generates a risk-free profit of