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Problem 1: suppose a trader is trading 3- month fwds, the underlying is 100 thousand shares that pay a 1.2 dividend per share in 6

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Problem 1: suppose a trader is trading 3- month fwds, the underlying is 100 thousand shares that pay a 1.2 dividend per share in 6 months, spot 230, the agreed price is 225, three and six months rates are 3% and 3.4%. respectively simple 30 / 360. a) generate an arbitrage strategy (if it exists) b) show that it is arbitrage

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