10. Suppose you are a market maker in S&R index forward contracts. The S&R index spot price is $1100, the risk-free rate is 5%, and the dividend yield on the index is 0. (a) What is the no-arbitrage forward price for delivery in 9 months? (b) Suppose a customer wishes to enter a short index futures position. If you take the opposite position, demonstrate how you would hedge your resulting long position using the index and borrowing or lending. (C) Suppose a customer wishes to enter a long index futures position. If you take the opposite position, demonstrate how you would hedge your resulting short position using the index and borrowing or lending. 10. Suppose you are a market maker in S&R index forward contracts. The S&R index spot price is $1100, the risk-free rate is 5%, and the dividend yield on the index is 0. (a) What is the no-arbitrage forward price for delivery in 9 months? (b) Suppose a customer wishes to enter a short index futures position. If you take the opposite position, demonstrate how you would hedge your resulting long position using the index and borrowing or lending. (C) Suppose a customer wishes to enter a long index futures position. If you take the opposite position, demonstrate how you would hedge your resulting short position using the index and borrowing or lending