3. The derivation of forward prices presented in the course material ignores transaction costs such as bid-ask spreads and different interest rates for borrowing or investing. This problem illustrates the effect of transaction costs. A trader can buy shares of the AAA Corp. at $ 150 per share. She can also sell shares of the AAA Corp. at $ 149 per share. The trader can borrow funds at 9% per year and invest funds at 8.5% per year. (Both interest rates are expressed with continuous compounding.) For what range of one-year forward prices of AAA Corp. does the trader have no arbitrage opportunities? Assume there is no bid-oask spread for forward prices, and that AAA Corp. does not pay any dividends. Provide a detailed explanation for your answer. 3. The derivation of forward prices presented in the course material ignores transaction costs such as bid-ask spreads and different interest rates for borrowing or investing. This problem illustrates the effect of transaction costs. A trader can buy shares of the AAA Corp. at $ 150 per share. She can also sell shares of the AAA Corp. at $ 149 per share. The trader can borrow funds at 9% per year and invest funds at 8.5% per year. (Both interest rates are expressed with continuous compounding.) For what range of one-year forward prices of AAA Corp. does the trader have no arbitrage opportunities? Assume there is no bid-oask spread for forward prices, and that AAA Corp. does not pay any dividends. Provide a detailed explanation for your