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ODoherty Industries has a stock price of $26, and is not expected to pay dividends over the next 6 months. The risk free rate is

ODoherty Industries has a stock price of $26, and is not expected to pay dividends over the next 6 months. The risk free rate is 0.25% per month. The forward price for a 6 month forward contract is quoted at $26.43. What are the arbitrage profits per share today?

1. 0

2. 3.4 cents

3. 3.7 cents

4. 4 cents

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