Suppose that: Google stock is trading

at $$500$ per share; Google does not pay

any dividends; Short selling the stock is

feasible at zero cost; You can borrow at

$5\mathrm{.}5\%$ and lend at $4\mathrm{.}5\%$ p$.$a$.$ b$.$ Suppose that that you additionally face

transaction costs in buying and selling stocks. The

bid price of Google is $$499$ and the ask price of

Google is $$501.$

c$.$ Suppose additionally that: You face a $$1$ per

share commission when you initially take the

forward position.

d$.$ Suppose additionally that: Short$-$selling costs $$5$

per stock per year stock borrowing costs payable

when the borrowed stock is returned to the stock

lender.