Suppose on today october 31 the cash price of gold is 270, Financial Management

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Suppose on today october 31 the cash price of gold is 270

Suppose on today, October 31, the cash price of gold is $270 (per ounce) the price of December gold futures contract, expiring on December 31, is $285. The annualized lending/borrowing rate is 5%/7% and the annualized cost of storing gold is 2%. Is there an arbitrage opportunity?

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Financial Management: Suppose on today october 31 the cash price of gold is 270

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