The current price of a stock is $50 and the stock is expected to pay a dividend of $2 in three months time. The risk-free rate of return is 4.00% p.a. (continuously compounded). If the price on a eight month forward contract is F_0,8/12 = $51, is there an arbitrage opportunity? What is the no-arbitrage price of the forward contract? If arbitrage is possible, design a strategy to take advantage of it. What is the arbitrage profit earned from this strategy?