Question: Finance Question and I need a thorough explanation! 1. [20 points] Consider the following bid & ask prices for a stock S, a lyr forward

Finance Question and I need a thorough explanation!

1. [20 points] Consider the following bid & ask prices for a stock S, a lyr forward contract F on the stock, and a lyr ZCB B (per $1). instrument bid ask stock 50.38 50.43 FWD 51.42 51.48 ZCB 0.9776 0.9783 Assuming you can trade in fractional units and there are no other transaction costs, create an arbitrage strategy and calculate its cashflows

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