Suppose that the risk$-$free interest rate is $10\%$ per annum with continuous compounding. The dividend yield on a stock is $6\mathrm{.}5\%$ per annum $($q$=6\mathrm{.}5\%).$ The stock currently is selling at $$260$ and the futures price for a contract deliverable in four months is $$266.$

a$.$ What is the forward price predicted by the formula F$0=$ S$0$ e$($r$-$q$)$T$?$ Blank $1($sample answer: $130\mathrm{.}50)$

b$.$ Is there an arbitrage opportunity? Blank $2($sample answer: yes; or no$)$

c$.$ If there is an arbitrage opportunity, then will you long futures or short futures? Blank $3($sample answer: Long; or Short$)$

d$.$What is the arbitrage profit per share if there is an arbitrage opportunity in today$$s dollar $($PV of the profit$)$ ignoring the transaction fee? Blank $4($sample answer: $1\mathrm{.}25)$