Part B (5 marks) Suppose that the spot price of gold is $900/oz, the quoted 1-year futures price of gold is $980/ounce. The 1-year interest rate is 5% p.a. with continuous compounding. Assume the storage cost is $20/oz payable in advance (i.e. at the beginning of the storage period). Describe an arbitrage strategy by indicating the position (long/short) and the value that you will take in each of the available assets/instruments (i.e., gold, risk free loan/bond and the gold futures) and calculate the arbitrage profit ($/oz)