5) Suppose that you enter into a six-month forward contract on a non-dividend-paying stock when the stock price is $100 and the risk-free interest rate (with continuous compounding) is 12% per annum. What is the equilibrium forward price? a) 106.18 b) 103 c) 94.17 d) 100 6) Using the info in (5) if the market futures price is 103 , there will be a) arbitrage profit of 3.18 b) no arb profit c) lower bound violations d) none..... 7) If the futures price is 103 an arbitrageur should a) go long the futures, short the spot and invest at r b) go long the futures, long the spot and invest at r