]Consider a two-year futures contract on gold. We assume no income and that it costs $2.00 per ounce per year to store gold. The spot price is $1600 per ounce and the risk-free rate is 4% per annum for all maturities. This corresponds to = 0.04, 0 = 1600, = 2, and = 2 0.042 = 1.85. What arbitrage opportunity is possible if the futures price for a contract is $1600 or $1,770?