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Assume that you can borrow and lend at continuously compounded risk free rate of 8% p.a. and 5% p.a. respectively. The One year Future price

Assume that you can borrow and lend at continuously compounded risk free rate of 8% p.a. and 5% p.a. respectively. The One year Future price of a stock which pays dividend of Rs.2 each after 3 months and 8 months is Rs.65. The spot price of the stock is Rs. 60. Is there an arbitrage opportunity? List the steps to en cash the arbitrage opportunity

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