Assume that we know the following A bond will make a risk-free payment of 1000 SEK in one year's time. The current price of the bond is 964 SEK. You can also put your money into a bank account which we also assume is risk-free. The bank account gives you an interest rate of 0.8 % over the year and this is also the rate at which you can borrow money. What would be the arbitrage strategy, and how much do we gain pursuing it?

(The alternatives display numbers rounded to one decimal point.) a) Invest 992.1 SEK in the bank account today and receive 1000 SEK in one year. b) We borrow 992.1 SEK from the bank and buy the bond for 964 SEK. This gives us 28.1 SEK today. c) Buy the bond today for 964 and receive 1000 SEK in one year. d) There is no possibility for arbitrage. e) We go short in the bond and invest 964 SEK in the bank account. This gives us 28.3 SEK today.