The spot price of inon are (for immediate delivery) is quoted at US\$130 per dey thetric ton unit (DMTU) and the risk-free rate is 3.5% per annum with continuous compounding Furthitmose. th store one dry metric ton unit of iron ore it costs US\$3 per year, payable every six montin in arteinem. Answer the following questions in the space provided below. (a) A certain trader quotes the one-year forward price on iron ore at $136. Does an arbitrage Opportunity exist? If so, describe in words (no numbers required) how you can make a risk-tree peofit. from this situation. In your answer be sure to include: (i) the name of the arbitrage strategy avoilable in this case, and (ii) the actions you take at various times (i.e. today, in six months, and in one year): (3 marks) b) What is the dollar amount of the risk-free profit that can be made per DMTU using the above rbitrage strategy? (1 mark) The spot price of inon are (for immediate delivery) is quoted at US\$130 per dey thetric ton unit (DMTU) and the risk-free rate is 3.5% per annum with continuous compounding Furthitmose. th store one dry metric ton unit of iron ore it costs US\$3 per year, payable every six montin in arteinem. Answer the following questions in the space provided below. (a) A certain trader quotes the one-year forward price on iron ore at $136. Does an arbitrage Opportunity exist? If so, describe in words (no numbers required) how you can make a risk-tree peofit. from this situation. In your answer be sure to include: (i) the name of the arbitrage strategy avoilable in this case, and (ii) the actions you take at various times (i.e. today, in six months, and in one year): (3 marks) b) What is the dollar amount of the risk-free profit that can be made per DMTU using the above rbitrage strategy? (1 mark)