On January 29, 1987, you could buy a March 1987 silver contract for $5,610 per ounce and

Question:

On January 29, 1987, you could buy a March 1987 silver contract for $5,610 per ounce and at the same time sell a March 1988 contract for $6,008 an ounce.
(a) Exactly what would you have done had you taken these positions?
(b) If the annual riskless rate of interest were 8%, would the position be profitable? Why or why not?