Suppose that the spot price of gold is $450. The total cost of insurance and storage for gold is $30 per year, payable in advance. The rate of interest for borrowing or lending is 10%. Suppose you own some gold (that's a hint!) if the forward price is $450, how much money could you make from arbitrage at expiration of the forward? Hint: Use an arbitrage table after you figure out the appropriate arbitrage portfolio.

		86
		78
		75
		30
		No arbitrage is possible