Consider a forward contract on Apple. The current stock price is $112.24 and the forward price being offered is $115.89 for a six month period. a. If the risk free rate is 2.5%/year, demonstrate whether a profitable arbitrage is available or not. Assume no dividends. b. Now suppose the prices in part a) are the mid-points between the bid and ask prices and the spread for both Apple and the contract is $0.80. (Meaning the bid and ask are $.40 higher/lower than the price reported.) If you could only transact at the bid and ask prices, would there be an arbitrage