1. (10 points) Consider a forward contract on an asset paying no income with price (Sc) 120 (e.g., stock without dividends) with maturity T. Let Z(t, T) be the value at time t of a ZCB maturing at time T. Let F(t,T) denote the forward price. It holds that F(t, T) = S,Z(t, T)"? (1) (i) Show (1) using replication argument. (ii) Show (1) using no-arbitrage argument. 1. (10 points) Consider a forward contract on an asset paying no income with price (Sc) 120 (e.g., stock without dividends) with maturity T. Let Z(t, T) be the value at time t of a ZCB maturing at time T. Let F(t,T) denote the forward price. It holds that F(t, T) = S,Z(t, T)"? (1) (i) Show (1) using replication argument. (ii) Show (1) using no-arbitrage argument