1)A stock that has just paid its dividend is currently priced at $73.18. The six month futures contract, that expires before the next dividend is paid is trading at $75.26. If the continuously compounded risk free rate is 1.75%, what trade would you do to capitalise upon the situation and how much would you expect to gain from it?

2) A stock that has just paid its dividend is currently priced at $73.77. The four month futures contract, that expires before the next dividend is paid is trading at $73.16. If the continuously compounded risk free rate is 0.75%, what trade would you do to capitalise upon the situation and how much would you expect to gain from it?

3)A stock is trading at $72.15. The call option with the strike price of $75.00 is trading at a premium of $1.00. The put option with the same strike price is trading at $3.80. The time to expiry is 5 months and the continuously compounded return is 2%, Calculate the profit from the arbitrage opportunity using calls, and again using puts?

4)A stock is trading at $68.92. The call option with the strike price of $70.00 is trading at a premium of $6.23. The put option with the same strike price is trading at $8.22. The time to expiry is 65 days and the continuously compounded return is 0.75%, Calculate the profit from the arbitrage opportunity using calls, and again using puts.