5.33. A trader owns a commodity that provides no income and has no storage costs as part of a long-term investment portfolio. The trader can buy the commodity for $1,250 per ounce and sell it for $1,249 per ounce. The trader can borrow funds at 6% per year and invest funds at 5.5% per year (both interest rates are expressed with annual compounding). For what range of 1-year forward prices does the trader have no arbitrage opportunities? Assume the bid and offer for a forward price are the same.

This question is from the 10th edition. NO SLOPPY HANDWRITING.