uestion 16 Suppose a trader observes the following prices on June 15 (6/15 = t). The futures price of gold for September 15 (=T1) delivery is $450/oz. That is t T1 = $450. The futures price of gold for December 15 (= T2) delivery is $460/oz. That is Ft2 = $460. The borrowing and lending rate is 4% per annum and the storage cost T1CT2 is $2.00, which is payable on 12/15. Assume FT2 = tft1 (1+ T1 T2) + T1CT2 is the equilibrium situation. What is the arbitrage profit? $3.50 $2.50 $1.75 $2.00 7