Question 7 (Total 10 marks) Currently the spot bid price for a rare material is $4.8 per pound, and the spot offer price is $4.9 per pound. And we can also borrow funds at 6.2% per annum, and lend at 5.8% per annum, both with continuous compounding. What should be the range for the one-year forward prices of this material for there to be no arbitrage opportunity? Assume there is no bid-offer spread for forward prices and also no storage cost for this material