3. Suppose you are a market-maker in the S&P 500 index contracts. The S&P 500 spot >> price is $5,200, the risk-free rate is 4.8%, and the dividend yield on the index is 1.5%. (6) a. What is the no-arbitrage price of the S&P 500 forward contract for delivery in 9 months? (2) b. Suppose a customer wishes to enter a long physical index position. If you take the opposite position, you will hedge your resulting short position using the forward and borrowing or lending. Then, how much you need to lend or borrow? (Choose borrow or lend and indicate the amount.) (4) You should (borrow/lend) as much as $ Time (Long/Short) forward (Long/Short) index (Long/Short) bond Total t = 0 T = 9m