Consider a 3-year forward contract on stock. The stock will pay $5-dividend every year in years 1 through 3 and currently sells for $80. The forward will expire right after the stocks dividend payment in year 3. The forward price is $78, and the risk-free interest rate is 4% per annum. We want to make an arbitrage such that net cash flow in year 3 is positive and net cash flows from year 0 through year 2 are zero. In this arbitrage, what position do we need regarding 3-year zero-coupon bonds?

(a)buy 3-year bond such that we pay $70.58 now

(b) buy 3-year bond such that we pay $73.61 now

(c) sell 3-year bond such that we receive $70.58 now

(d) sell 3-year bond such that we receive $73.61 now