You would like to purchase 10 tons of a specific type of crops in one year via futures contract. The current price of the crop is $800 per ton. You know that the storage cost of this type of crops is $100 per ton per year, and each year 8% of the stored crops are lost due to insects and mould. i. What is the total futures price of your purchase if risk-free rate = 3%? ii. Suppose you can pay $30 per ton per year to prevent the 8% loss due to storage and suppose that no-one else has this facility. Does there exist an arbitrage opportunity? If so, explain your strategy and compute the arbitrage profit.