Please explain in detail for each of your steps. thank you

4. A stock index is currently trading at S0=100. A one-year forward contract is available for long or short position on the index with forward price $105. The continuously compounded rate of interest is 6%. (a) Suppose that the index pays continuous dividends at rate 2%. Find the profit on a cash-andcarry strategy for delivery of one unit of the index at the end of one year. Determine the implied repo rate. (b) Suppose that the index pays continuous dividends at rate . Find the range of values of for which it is possible to obtain a reverse cash-and-carry arbitrage for delivery of one unit of the index at the end of one year? 4. A stock index is currently trading at S0=100. A one-year forward contract is available for long or short position on the index with forward price $105. The continuously compounded rate of interest is 6%. (a) Suppose that the index pays continuous dividends at rate 2%. Find the profit on a cash-andcarry strategy for delivery of one unit of the index at the end of one year. Determine the implied repo rate. (b) Suppose that the index pays continuous dividends at rate . Find the range of values of for which it is possible to obtain a reverse cash-and-carry arbitrage for delivery of one unit of the index at the end of one year