A stock will pay a dividend of $1 in one month and $2 in four months. The relevant risk-free rate of interest based on continuous compounding is 12%. The current price of the stock is $90.

1. Determine the arbitrage-free price of (i) a 3 month forward on a contract and (ii) a six-month forward contract on the stock
2. Suppose the six-month forward is quoted at $100. Identify any arbitrage opportunity and explain what trades you would make to capture it. If applicable, determine the present value of any profit you would earn.