Question: Please answer it as fast as possible, i will thumb up your answer thanks. 3. The up-front cost of storing potatoes for 6 months is

Please answer it as fast as possible, i will thumb up your answer thanks.

3. The up-front cost of storing potatoes for 6 months is $5000 per 10,000 pounds. The spot price of potatoes is $1.10 per pound. The forward price of delivering 10,000 pounds in 6 months is $20,000. Today, you can borrow money (for any length of time) at 5%, and invest money (for any length of time) at 4%. Describe an arbitrage opportunity involving 30,000 pounds of potatoes. After 6 months, what is the risk-free profit associated to this opportunity

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