Problem $2$ Suppose you are interested in futures contract of a stock which pays dividends

continuously at a dividend yield of $5\%$ per year. The stock is currently selling at $$30,$ and

each futures contract is on $50$ shares of stock. Moreover, the annual interest rate is $10\%$

compounded annually. If you observe that the futures price with delivery date $1$ year from

now is $$32($per share of stock$),$ is there arbitrage opportunity? If there is$,$ construct a

strategy to earn risk$-$free profit.