It is given that S(0)=$10.=4%p.a.F(0,T)=$10.30.fromnow("timeT).Thisisthepricepershareofagivenstock.Thisisthedividendrate(continuously-compounded,usinga365dayyear).Thisisthegrowthrateofthenumberofsharesunderreinvestmentofdividends.Thisistheforwardpricefordeliveryof1share200days (a) Show how synthetic lending over 200 days can be obtained. You need to hold shares (long or short) and one zero-downpayment forward contract, long or short. (b) What is the implied annual interest rate, expressed as a continuously-compounded rate (using a 365 day year)? (c) Show how synthetic lending over 200 days can be obtained. You need to start with a (long or short) position in 1 share of stock plus a (long or short) position in zerodownpayment forward contracts. It is given that S(0)=$10.=4%p.a.F(0,T)=$10.30.fromnow("timeT).Thisisthepricepershareofagivenstock.Thisisthedividendrate(continuously-compounded,usinga365dayyear).Thisisthegrowthrateofthenumberofsharesunderreinvestmentofdividends.Thisistheforwardpricefordeliveryof1share200days (a) Show how synthetic lending over 200 days can be obtained. You need to hold shares (long or short) and one zero-downpayment forward contract, long or short. (b) What is the implied annual interest rate, expressed as a continuously-compounded rate (using a 365 day year)? (c) Show how synthetic lending over 200 days can be obtained. You need to start with a (long or short) position in 1 share of stock plus a (long or short) position in zerodownpayment forward contracts