Recall that the risk-neutral probability of an asset corresponds to the probability for which the expected return on the asset equals the risk-free rate. Consider a special case in which the current asset value is S0 = 100 and the annual risk-free rate is r = 0%. The asset does not pay dividends. Additionally, consider a simple distribution in which the asset price goes up by $10 with probability p and drops by $10 with probability 1 p. Based on this information, what is the risk-neutral probability? (a) 0.55 (b) 0.50 (c) 0.45 (d) 1.00 The price of a six-months forward contract is $100. What is the potential arbitrage profit? (a) $1.00 (b) $0.00 (c) $0.50 (d) -$0.50