Cash and Carry example in curriculum

CFA curriculum, Book 4, p.429, question 2 (B and C) Cash and carry means borrowing to buy the spot. But in this example, there was no borrowing? what am i missing?

Isn’t cash and carry where you are compensated for storage costs to sell at the forward rate?

Cash and carry arbitrage: At time 0: 1. Borrow some cash. 2. Buy the commodity. 3. Short the forward. 4. Lend the commodity. At time t: 5. Get it back. 6. Settle the forward. 7. Pay back the loan.

frig… not sure I can remember all that right now :slight_smile: lol