Given the Following Information,calculate the Expected Arbitrage Profit or Loss

Given the following information,calculate the expected arbitrage profit or loss from buying an ounce of gold today for $553 and selling a futures contract that matures in six months' time at a price of $570.Assume interest rates are 10% p.a. ,insurance costs are $20,the risk factor is 5 per cent on the cost of gold,and projected gold production over the next 12 months is 5000 ounces.

A) $0
B) ($31)
C) $17
D) $31

Correct Answer:

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