A certain stock portfolio is selling for $1,000 and pays a 2.5% dividend yield. The risk-free rate is 1% per year. Suppose the one-year futures price is also $1,000. Explain why this represents an arbitrage opportunity and describe how you would exploit it, making sure to show that you earn a profit and that the profit is risk-free. 

Suppose you are thinking of buying an apartment complex. The asking price is $1 million. The complex generates $200,000 per year in rental income and costs $100,000 per year to maintain. The risk-free rate of interest is 7% per year. Unfortunately, you will not have the capital required to complete this kind of deal until you collect a signing bonus from your new job in 6 months. You propose a forward contract in which you agree today to buy the complex from the seller in 6 months. What selling price should be agreeable to both parties?