Question: Consider the following: - A stock trades for SD = $104 and pays a $10 dividend in half a year. - There is a one-year

Consider the following: - A stock trades for SD = $104 and pays a $10 dividend in half a year. - There is a one-year fomrard contract on the stock priced at PM = $100 - The continuously compounded risk-free interest rate is 4% Assume there are no transaction/short-selling costs. a) Is there an arbitrage opportunity? b) If so, calculate the profit at t = 0 using a cashflow table. I need a thorough explanation for this queson

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