Consider a forward contract set up at time t with maturity at T on a non-dividend paying stock S. A zero-coupon of maturity at T can be traded on the market. It can be sold for Z (s) (t, T) or bought for Z (b) (t, T) where Z (s) (t, T) < Z(b) (t, T). Moreover, the stock can currently be sold for S (s) t or bought for S (b) t . In this case, possible forward prices which dont lead to arbitrage are not unique. Derive an interval (as small as possible) for the forward price outside of which arbitrage would be possible. Show how to construct an arbitrage strategy if the forward price is outside of the derived interval.