Interest rates (with continuous compounding) are 1.20%. Arasaka shares trade at $55.31, and will pay a dividend of $4.67 in 6 months time. You are offered an opportunity to take a position in a forward contract written on Arasaka shares, maturing in 11 months, at a price of $51.43. What is the arbitrage opportunity? Borrow in order to buy shares, pay off debt with the dividend, close out with long forwards. Short sell shares, invest the proceeds, using some of this to pay the dividend, close out with short forwards. Borrow in order to buy shares, pay off debt with the dividend, close out with short forwards. Short sell shares, invest the proceeds, using some of this to pay the dividend, close out with long forwards.