Suppose you can borrow and lend at the annual interest rate of $6\%$ per annum. The IBM stock is trading at $$200.$ It is not going to pay any dividend in one year. Use this information to answer the following three questions.

$20.$ What is the fair forward price of a forward contract which calls for the delivery of $1$ share of IBM stock at the end of one vear?

A$.$ $$216$

B$.$ $$210$

C$.$ $$214$

D$.$ $$212$

$21.$ If the actual forward price Fa is $$214,$ your arbitrage strategy is to

A $$buy one share of IBM, borrow $$200,$ and sell the forward

$$B$$ buy one share of IBM, borrow $$212,$ and buy the forward

C$$ short one share of IBM, lend $$200,$ and buy the forward

D $$short one share of IBM, borrow $$200,$ and sell the forward

$22.$ At the end of one year, suppose IBM stock price is St$,$ then the cash flow in the spot $($stock$)$ market is $\_,$ the cash flow in the forward contract is

and the arbitrage profit is

$$A $$ST$,214-$ ST$,2$

$$B $-$St$,$ ST$-214,2$

$$C$-$ST$,214-$ST$,2$

$$D $$ST$,$ ST$-214,2$