Can you explain in detail how you would get those answers please.

Problems and short answer 1. [5 points MSFT currently trades for $100/share. The riskless rate of interest is 10%/yr c.c. What is the fair value of a futures contract on MSFT for delivery in six months? = 105.13 2. [10 points] MSFT currently trades for $100/share and the riskless rate of interest is 10%/yr c.c. Suppose this futures contract for delivery in 6 months is quoted at $103/share. Show how you can construct a trade to earn arbitrage profits. Cash Flow (0) Cash Flow (T) Action Leg (1) Long T-bills (Invest at risk free rate) -100 +105.13 Leg (2) Short Asset, Long Future +100 -103 Sum of Cash Flows 2.13