Question: 8. You are given: S = 50, r = 6%, 8 = 2%, T = 1. Jasmin observes a one year forward price of 53.5

8. You are given: S = 50, r = 6%, 8

8. You are given: S = 50, r = 6%, 8 = 2%, T = 1. Jasmin observes a one year forward price of 53.5 in the market. She enters a short position in a forward contract to sell one share of the stock and buys one share of the stock. Determine whether Jasmin's portfolio is an arbitrage portfolio or not. (6 points)

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