2) The current spot price of silver is $23 per troy ounce. Suppose a trader can borrow money at 7% per annum with monthly compounding and lend money at 5% per annum with quarterly compounding. The current twelve-month forward price of silver is $23.75 per troy ounce. Does the trader have any arbitrage opportunities? If one does exist, use an arbitrage 4 table to demonstrate how you can make a riskless arbitrage profit. Note that the table should have the following column titles: “Transaction”, “Payoff (now)”, and “Payoff (12 months)”. For simplicity, you can assume there are no storage costs and no convenience yield on silver.