Suppose that (1) the spot price of gold is $1,000, (2) the quoted 1-year futures price of gold is $1,200, (3) the 1-year interest rate is 5% per annum, and (4) no income or storage costs for gold. Which of the following actions is not a part of the arbitrage strategy?

1. Borrow $1,000 for one year at 5% per year
2. Buy 1 oz of gold at $1,000 per oz on the spot market
3. Long 1-year gold futures contract
4. Short 1-year gold future contract

Please explain