The spot price of a stock that pays an annual dividend of $2.40 is $334,50 (dividends are paid quarterly, that is, $0.60 every quarter). Furthermore, the risk-free rate for all maturities (with continuous compounding) is 5%. a. If the next dividend payments are due in 3 and 6 months, respectively, what should a six-month forward price be? b. If the current forward price for the stock is 340, is there an arbitrage opportunity? If so, please explain why there is an arbitrage opportunity and what position (long or short) you would take on the forward market, if any. Note: you do not need to show how to exploit the arbitrage opportunity, if any; only state whether you would buy or sell forward the bond and why there is an arbitrage opportunity, (12 points)