Suppose you are a market maker (dealer) in S&R index forward contracts. The S&R index spot price is 1100, the risk-free rate is 5%, and the dividend yield on the index is 1.5%. Both the risk-free rate and the dividend yield are continuously compounded. (a) What is the no-arbitrage forward price for delivery in 9 months? (b) Suppose a customer wishes to enter a short index futures position. If you take the opposite position, demonstrate in the table of cash flow how you would hedge your position using the index and borrowing/lending. [Hint: since the underlying is paying continuous dividend, you need to take that into account when calculating the number of units of underlying to long or short.] (c) Suppose a customer wishes to enter a long index futures position. If you take the opposite position, demonstrate in the table of cash flow how you would hedge your position using the index and borrowing/lending. [Hint: since the underlying is paying continuous dividend, you need to take that into account when calculating the number of units of underlying to long or short.]