3) The current spot price of gold is $1,150 per ounce and the current 1-year forward price is $1,226. The current 1-year risk free rate is 6.5% per annum with semiannual compounding.

If there is a $20 transaction fee for the combination of all transactions made, paid today,

can you make an arbitrage profit with 100 shares? If there is an arbitrage how much would

you make? Otherwise prove that there is not an arbitrage.