(a). Consider a 10-month forward contract on a stock when the stock price is GH60. Assume that the risk-free interest rate (continuously compounded) is 6% per annum for all maturities. Assume that dividends of GH0.95 per share are expected in 3 months, 6 months and 9 months. What is the forward price (b). Suppose that the risk-free rate is 8%. However, as a small investor, you can invest money at 7% only and borrow at 10%. Does either of the classical strategies give an arbitrage prot if F (0, 1) = GH89 and S(0) = GH83, and a GH2 dividend is paid in the middle of the year? (c). Consider a 6-month forward contract on a stock when the stock price is GH25. Assume that the risk-free interest rate (continuously compounded) is 10% per annum. Assume that the yield is 4% per annum with semiannual compounding. What is the forward price?