Suppose that the risk-free interest rate is 10% per annum with continuous compounding. The dividend yield on a stock is 6.5% per annum. The stock currently is selling at $265 and the futures price for a contract deliverable in five months is $270. a. What is the forward price predicted by the forrmula F₀ = S₀ e^(r-q)T? b. Is there an arbitrage opportunity? (sample answer: yes; or no) c. If there is an arbitrage opportunity, then will you long futures or short futures? (sample answer: Long; or Short) d. What is the arbitrage profit per share if there is an arbitrage opportunity in todays dollar (PV of the profit) ignoring the transaction fee?