You are an analyst at a large hedge fund company. You are analyzing the arbitrage opportunity related to Spot and Futures party. Suppose that a six-month futures price on lean hog is 65 cents per pound and the spot price of lean hog is 62 cents. The risk-free rate of interest is 10% per annum.

a. is there an arbitrage opportunity?

b. if there is an arbitrage opportunity, then will you borrow money or lend money?

c. What is the arbitrage profit per pound of lean hog if there is an arbitrage opportunity in today's dollar (PV of the profit) ignoring the transaction fee?