Platinum is trading at $1200, butone year Platinum contracts are trading at $1500.

They define the Platinum contract as 50 ounces/c, $/c, $10,000, $8,000. Your broker quotes you $20/ ounce storage and insurance, $400/ounce borrowing fee on platinum, and 8.0% on cash balances

An investor decides to arbitrage this price difference using 500 ounces of Platinum

He must buy? OR sell?platinum

and buy? OR sell? a total of platinum contracts.

If he takes this arbitrage right to delivery he will make a profit/(loss) of $

The cost of carry is $ /ounce

The futures price at which arbitrage is no longer profitable is $