The spot price of palladium (for immediate delivery) is quoted at $1,917 per troy ounce and the risk-free rate is 3.5% per annum with continuous compounding. Furthermore, to store one troy ounce of palladium it costs $2 per year, payable quarterly in advance. Answer the following questions in the space provided below. (a) A certain trader quotes the six-month forward price on palladium at $1,935. Does an arbitrage opportunity exist? If so, describe in words (no numbers required) how you can make a risk-free profit from this situation. In your answer be sure to include: (i) the name of the arbitrage strategy available in this case, and (ii) the actions you take at various times (i.e., today, in three months, and in six months). If needed, assume that short selling of palladium is possible. (3 marks) (b) What is the dollar amount of the risk-free profit that can be made per troy ounce using the above arbitrage strategy? (1 mark)