Consider a 7-month forward contract on Apple Computer Inc. (AAPL). The current price of one share is $208, and the annual continuously compounded risk-free interest rate is 5%.

Suppose 1) that the actual quoted forward price for a 7-month contract is 215.15 per share of AAPL; 2) that theborrowing rateis 7% per year with semiannual compounding andlending rateis 4.8% per year with monthly compounding; and 3)the arbitrageur insists shorting a forward contract on 1 share of stock and using proper "arbitrage" asset trading and loan transactionsas we discussed in lecture.

What is the net payoffs of the trader's overall arbitrage trading strategy at t=7 month?