14. Consider a 2-year forward contract on a non-dividend-paying stock. The current stock price is $500. The forward price is $520, and the risk-free interest rate is 5% per annum. Is there an arbitrage? If so, what is the arbitrage profit today? (Consider an arbitrage strategy where we long or short the forward on one share of the stock and the net cash flow in year 2 is zero) (a) $29.49 (b) $31.00 (c) $32.59 (d) No arbitrage exists. 15. In October 2018, an investor entered a short position in forward on crude oil for delivery in October 2021. At that time, the spot price of crude oil was $70 per barrel and the risk-free rate of interest was 2% per annum. Currently, in October 2020, the spot price of crude oil is $40 per barrel and the risk-free rate of interest is 1% per annum. What is the value of the short position in the forward? (a) 30.00 (b) 32.78 (c) 33.59 (d) 33.93