A. The current price of gold is $300 per ounce. Consider the net cost of carry for gold to be zero. A. The current price of gold is $300 per ounce. Consider the net cost of carry for gold to be zero....

A. The current price of gold is $300 per ounce. Consider the net cost of carry for gold to be zero. The risk-free interest rate is 6 percent. What should be the price of a gold futures contract that expires in 90 days?

B. Using Part A above, illustrate how an arbitrage transaction could be executed if the futures contract is priced at $306 per ounce.

C. Using Part A above, illustrate how an arbitrage transaction could be executed if the futures contract is priced at $303 per ounce.