Q. 7 (10 points) Consider the following information. There is a forward contract of which the underlying asset is a stock. Dividends are paid out continuously and the dividend yield of the stock is 1%, cc. The spot price of the stock at t=0 is $50, the time to expiration of the forward contract is T=0.5 years, and the annual riskfree interest rate is 5%, cc. Suppose that the forward price at t=0 is $52.5. Is it possible for you to construct a strategy that: (i) costs you nothing at t=0, AND (ii) a strictly positive riskfree cash inflow at T=0.5 ? If no, explain why not. If yes, specify the strategy and use a payoff table to verify that it satisfies conditions (i) and (ii) above