The current spot price of a stock is $100 per share, and the risk-free rate is 5%. The stock pays no dividends and costs nothing to store. 1. Use formula 2.2 from the reading to calculate the theoretical arbitrage-free or fair price of a one-year forward contract. 2. An investor buys the forward contract at the price from question 1 ; s /he is long the futures contract. In a year, the spot stock price is $90 per share. What is the payoff from financially settling the long future position? In a year, the spot stock price is $95 per share. What is the payoff from financially settling the long future position? In a year, the spot stock price is $100 per share. What is the payoff from financially settling the long future position? In a year, the spot stock price is $105 per share. What is the payoff from financially settling the long future position? In a year, the spot stock price is $110 per share. What is the payoff from financially settling the long future position? 3. Draw the hockey stick for this position; remember to label both axes and mark the breakeven valu