Pauline is planning to purchase a 90-day forward contract on 1,000 units of ABC company shares. The current share price of ABC company is $18.58 per share. Assume that Pauline can borrow or lend at 6.45% p.a. sim ple interest a. 4 marks By using two carefully labelled cash flow diagrams in your answer setting out the cash flows associated with the forward contract and the repli- cating portfolio. Base your answer on the arbitrage pricing principle, and calculate the fair forward price to buy 1,000 units of ABC company shares at the end of 90 days. Round your answer to three decimal places. b. 4 marks] Suppose that the forward price for a forward contract on 1,000 units of ABC company shares, to be delivered at the end of 90 days, is $18,500. List and explain all the steps that Pauline needs to undertake in order to make an arbitrage profit from this forward contract. Make sure you outline all that needs to happen on all relevant dates, as well as today. Round your answer to three decimal places c. 4 marks] Suppose that the forward price for a forward contract on 1,000 units of ABC company shares, to be delivered at the end of 90 days, is $19,000. List and explain all the steps that Paine needs to undertake in order to make an arbitrage profit from this forward contract. Make sure you outline all that needs to happen on all relevant dates, as well as today. Round your answer to three decimal places d. [2 marks Calculate the fair forward price to buy 1,000 units of ABC company shares at the end of 90 days, if there is a transaction cost charged when we are purchasing ABC shares. The cost is $50 which is a flat charge for any purchase volume (e.g., if you purchase 100 units of ABC company shares, the total transaction cost is $50. Alternatively, if you purchase 200 units of ABC company shares, the total transaction cost is still $50.). Round your answer to three decimal places