Consider a 1-year forward contract, on a stock. The current price of a stock is $150, and the risk-free interest rate is 5% per annum. A dividend will be paid every quarterly, with the amount of the first dividend is $15, but each subsequent dividend will be 2% higher than the one previously paid. (a) Calculate the fair price of a 1-year forward contract on this stock. (5 marks) (b) Determine the arbitrage strategy given the current prepaid forward in the market is priced at $100. (3 marks) (c) A 1-year European put option with the stock as the underlying asset and at a strike price of $88 is priced at $6. (i) Calculate the price of a call option with the same strike price and expiration date. (4 marks) (11) Calculate the minimum profit of synthetic long forward from (c)(i). C) (5 marks) (iii) If the price of the call in part (c)(i) is fixed at $10, determine the opportunities available for an arbitrageur. Explain the strategy and create the strategy table. (8 marks)