Crude oil futures contracts are 1,000 barrels, are quoted in dollars per barrel, and the initial margin is $9,000 per contract. Soybean futures contracts are 5,000 bushels, are quoted in cents per bushel, and have an initial margin of $4,725. E-mini S&P 500 futures contracts are quoted in S&P 500 index value with a $50 multiplier and have an initial margin of $12,650 per contract. Gold futures contracts are 100 ounces and are quoted in dollars per ounce.

7. The spot price of gold is 1,905.00 and the six-month gold futures price is 1,981.10. The annual risk-free rate is 4.80%.5 pts a. Show that the six-month gold futures price does not satisfy spot-futures parity. b. Demonstrate the spot-futures cash and carry arbitrage strategy. c. If an investor played this arbitrage strategy with 200 gold futures contracts, what would be the investor's total profit