Reverse Cash and Carry Strategy ?

Suppose I have a following example. Price of Commodity as of today = $100 / unit Risk Free Rate of Return = 5%* Storage Cost = 2%* *Both returns are continuously compounded. Perform steps to create an arbitrage if the price of Futures for 1 Year is A) $110 B )$106 I am able to design the process for Part A of this illustration which appears to be straight forward. (A) At time = 0 Cashflow 1. Borrow $100 at Rfr 5% $100 2. Invest the amount borrowed into Commodity ($100) 3. Sell Futures - (B) At time = 1 Yr Cashflow 1. Sell Stock at Futures Contracted Price $110 2. Repay the borrowed amount with interest ($105.13) 3. Pay Carrying Cost ($2.02) Profit _ $2.85 _ However for some reasons I am unable to derive the structure for Case B. I would appreciate if you could help me design the structure in Case 2 when the price of futures is $106. I understand that at time 0 we would buy futures, sell stock and lend amount at risk free rate. What I do not understand is how Carrying Cost would come into picture. Thanks for your explanation.

Maybe you saved $2.02 by not having to carry the commodity, and you would get that back once the commodity comes back in 1 year.