Problem 1.1. An arbitrage free forward contract written on a dividend paying stock which mature at time T is values as For Socy 1. Prowe that For Soel -17 is the arbitraye free price by showing if For Soel. then arbitrage opportunity crist. 2. Show that long and short forward positions can be create synthetically using stocks and Problem 1.1. An arbitrage free forward contract written on a dividend paying stock which mature at time T is values as For Socy 1. Prowe that For Soel -17 is the arbitraye free price by showing if For Soel. then arbitrage opportunity crist. 2. Show that long and short forward positions can be create synthetically using stocks and