b) A refiner has 250 metric tons of Crude Palms Oil (CPO) in inventory and will hold it for the next 3 months. Current in Bursa Malaysia, one contract is 25 metric tons. The refiner intends to protect against the falling price of CPO to prevent losses. With the following information determine: 250 metric tons II Current inventory Spot price Annual storage cost Risk free rate RM2,175 per ton 4% per annum 6% per annum RM2,230 per ton 3 mnts CPO futures (1) The correct price of futures and compare with the quoted future price. (5 marks) (ii) The arbitrage strategy. (2 marks) (iii) The profit if you invested 50 metric tons with the maturity price at RM2,233. (12 marks)