Consider a 3-year forward contract on 50 underlying assets S. Each asset pays 71 in a years time and E63 in 2 years time. The spot price of one asset at time 0 is So- 3, 205.1. The continuously compounded interest rate is r = 4% fixed over the 3-year period). (a) Consider portfolio A which consists of 50 asset S. Fill out the table below with the cashflow generated by Portfolio A where it is assumed that any revenue is automatically invested in ZCBs that mature at the final time t = 3. Time t = 1 Portfolio Time 1-1 A: Time t = 2 Time t = 3 50So (b) Construct a replicating portfolio -called portfolio B- (to portfolio A) using a forward contract underlying 50 assets S (and with forward delivery price K, unknown at this time) and suitable ZCBs. All investments of Portfolio B are made at time t 0 Write in the table below the evolution of the value of Portfolio B (you don't need to fill out columns t-1 and t 2) PortfolioTime t-0 Time t-1 Time t-2 Timet-3 13: 0 50Sr - K Explain why Portfolio B replicates portfolio A. (c) Make use of the Law of one price and the tables above to find the no-arbitrage forward price K of the forward contract