The spot price of gold is 1,905.00 and the six-month gold futures price is 1,981.10. The annual risk-free rate is 4.80%. 5 pts

a. Show that the six-month gold futures price does not satisfy spot-futures parity.

b. Demonstrate the spot-futures cash and carry arbitrage strategy.

c. If an investor played this arbitrage strategy with 200 gold futures contracts, what would be the investors total profit?