2. The share price of ABC is currently $43. A cash dividend of $0.5 is expected in 6 months and a cash dividend of $1.2 is expected in nine months. From Bloomberg you identify the risk-free rate is 5% per annum with continuous compounding. (a) Compute the one-year forward price on the stock. (b) A certain trader quotes the one-year forward price on the stock at $47. Describe in detail how you can make a risk-free profit from this situation. In your answer be sure to include: i. the name of the arbitrage strategy available in this case; ii. the actions you take at various times and the dollar amount of your investments etc; iii. the dollar amount of the risk-free profit made from the arbitrage strategy.