QUESTION 8 A trader owns a commodity that provides no income and has no storage costs as part of a long-term investment portfolio The trader can buy the commodity for $1250 per ounce and sell it for $1245 per ounce. The trader can borrow funds at 6% per year and invest funds at 3% per year. (Both interest rates are expressed with continuous compounding.) For what range of one-year forward prices does the trader have no arbitrage opportunities? Assume there is no bid-offer spread for forward prices. O Between 1245 and 1250 O Between 1288 and 1321 Between 1283 and 1327 None of the above