Question: Question 1. [20 marks] Let A(0) = 100, A(1) = 112 and S(0) = 34 dollars. Is it possible to find an arbitrage opportunity if

Question 1. [20 marks] Let A(0) = 100, A(1) = 112

Question 1. [20 marks] Let A(0) = 100, A(1) = 112 and S(0) = 34 dollars. Is it possible to find an arbitrage opportunity if the forward price of stock is F = 38.60 dollars with delivery date 1

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