Suppose the stock pays a dividend D at time t before the delivery date T of the forward contract. Let rb denote the risk-free borrowing rate, and rl denote the risk-free saving rate. The current stock price is P . Find the no-arbitrage region for the forward price F0,T .

(Hint: The lender of the stock will demand the compensation of the dividend payment, which it is entitled if there is no stock lending.)