The current stock price is 80. A dividend of 2 will be paid 6 months from now.
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The current stock price is 80. A dividend of 2 will be paid 6 months from now. The continuously compounded risk-free interest rate is 6%.
If you observe a 1-year forward price of 82, describe actions you could take as an arbitrageur, and calculate the resulting arbitrage profit (per stock unit).
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