The interest rate is 1 percent per month
Delivery date (months) Futures price per ounce ($)1 8802 8903 9106 93212 1008The interest rate is 1 percent per month (compound basis). It costs $2 per ounce per month (payable for the whole period in advance) to store and insure gold. Each futures contract covers 100 ounces of gold. The current price of gold is $873 per ounce.Required:a. Identify any arbitrage opportunities by inspecting each individual contract against the spot price of gold today. Calculate the profit, if any, based on one gold futures contract. (8 marks)b. Describe any arbitrage opportunities by combining any two futures contracts. No calculations are required here