a. Suppose that the bid price of Google stock is $499 per share and the ask price is $501 per share. Google does not pay any dividends. Short selling the stock is feasible at zero cost. You can borrow at an annual rate of 5.8 and lend at 4.3% (simple compounding). The commission of closing a forward position is $1.9 per share. The short sell cost is $4 payable when the borrowed stock is returned. What is the highest forward price that will not allow arbitrage? Please round to two decimal places.

b. Suppose that Google stock is trading at $495 per share. Google does not pay any dividends. Short selling the stock is feasible at zero cost. You can borrow and lend any amount of money at an annual rate of 4.2% (simple compounding). What should the price of a forward contract on Google maturing one year later be? Please round to two decimal places.

c. Suppose that Google stock is trading at $542 per share. Google does not pay any dividends. Short selling the stock is feasible at zero cost. You can borrow at an annual rate of 5.1 and lend at 4.6% (simple compounding). What is the lowest forward price that will not allow arbitrage? Please round to two decimal places.