1. Suppose the current stock price of Company X is $50 and you can enter a forward contract (long or short position) to buy 50,000 stocks in 9 months for 851 each. The Company X stock is expected to increase to $53 in 9 months. The 9-month (risk free) spot rate is 3% (ce). (a) Is there an arbitrage if the Company X does not pay dividends? If so, carefully describe a possible (b) Suppose the 3-month (risk free) spot rate is 2.75%. Is there an arbitrage if Company X pays a dividend of $0.75 in 3 months? If so, carefully describe a possible arbitrage strategy. What should the forward price be in a world without arbitrage