3. It is now January. The current interest rate is 2%. The June futures price for gold is $1,500, whereas the December futures price is $1,510. Is there an arbitrage opportunity here? If so, how would you exploit it? If not, why not? 4. Suppose you have a long position in futures contracts that expire at the end of the month. You would like to roll this position forward (i.e., maintain a long position in the same underlying asset through a futures position that expires further in the future) by entering a short position at the end of the month to avoid physical delivery, and immediately entering a new long futures contract for a later delivery date. Would you rather the market be in contango or in normal backwardation? Why? 5. Consider the following information: . rus = 6%, rup = 3%% . Eo = 90 Yen per Dollar . Fo = 103 Yen per Dollar where the interest rates are annual yields on US or Japanese bills and the futures contract is for 1-year delivery. (a) Where would you lend? (b) Where would you borrow? (c) How could you arbitrage