You are thinking to buy diamonds. You know that the current price of diamonds is 2450 per oz. You also think that this is a good investment as there is no cost of storing it. Assume that ihere is the flat term structure with a continuously compounded interest rate of 7% for all naturities. a) What is the forward price of diamond with the five-month delivery? b) What does happen to a forward price if you need to store diamonds with the cost 1 per oz per month (payable monthly in advance). Calculate the new forward price. c) Using the calculations in part (b), assume now that the forward price is 2550 per oz. Calculate whether there is an arbitrage opportunity and how you could exploit it