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PLEASE ANSWER CORRECTLY AND THOROUGHLY! THANK YOU! The price of gold is currently $1,123 per ounce. The forward price for delivery in one year is

PLEASE ANSWER CORRECTLY AND THOROUGHLY! THANK YOU!

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The price of gold is currently $1,123 per ounce. The forward price for delivery in one year is \$1,413. An arbitrageur can borrow money at 3.15\% per annum. A. Is this forward curve in contango or backwardation? B. Could this scenario be profitable? What should the arbitrageur do and why? (show calculations) Assume that the cost of storing gold is zero and that gold provides no income

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