Suppose that the spot price of gold is $450. The total cost of insurance and storage for gold is $5 per year, payable in advance. The rate of interest for borrowing or lending is 20%. If the forward price is $580, what should be your arbitrage portfolio if there is an obvious arbitrage? Hint: Use an arbitrage table to check your answer.

		Sell the spot commodity, lend money, and buy a forward contract
		Borrow money, buy the spot commodity, and buy a forward contract
		Borrow money, buy the spot commodity, and sell a forward contract
		Sell a forward contract, lend money, and buy the spot commodity
		No arbitrage is possible here