Question: a ) A 1 2 months forward contract is being traded on a stock whose cur rent price is $ 3 2 . If the

a) A 12 months forward contract is being traded on a stock whose cur
rent price is $32. If the interest rates for 12 months are 7%, find the forward priceSuppose that the forward price is $38, is there an arbitrage opportunity?
Detail the strategy!
b)

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