Sliver sells at $1,203 per ounce and it has a storage cost U paid at the beginning of each 6-month period. The risk-free interest rate is 4% per annum continuously compounded. The 3-month futures price is $1,237.504. Assuming that Silver doesnt have a convenience yield.

(a) what is the storage cost? (b) is there an arbitrage if the 1 year future price is 1274

for the part A is there really have a cost due to the six year period; which does not connect with the 3 month contract.