4. Stock XYZ has a current price of 50. The forward price for delivery of this stock in 1 year is 55. Unless otherwise indicated, assume the stock pays no dividends and the annual effective risk-free interest rate is 10%. Determine which of the following statements is false. Give a brief explaination. (a) An individual purchasing the forward contract is affected by price fluctuations just like someone investing in the stock. (b) An individual who is shorts the forward contract benefits from the stock decreasing in price. (c) There is no arbitrage in this deal (i.e. 55 is the fair forward contract price). (d) If the 10% interest rate was continuously compounded instead of annual effective, then it would be more beneficial to invest in the stock, rather than the forward contract. (e) If there was a dividend of 1.50 paid 6 months from now, then it would be more beneficial to invest in the stock, rather than the forward contract