Copper is trading at $1.30/1b. Suppose the three month interest rate is 4 % continuously compounded and the convenience yield net of storage costs is k = 3%. (a) (4 points) As a trader, establish the highest possible price that the futures contract could trade at above which there would be obvious arbitrage free profits. Explain in detail. (b) (4 points) Establish the lowest price below which there would be obvious arbitrage free profits. Explain in detail. (c) (2 points) Identify the lowest value of the convenience yield net of storage costs that would push the market into backwardation