1. You enter into a long position in a one-year forward contract on a stock today when the stock price is $150, and the risk-free rate of interest is 2% per annum with continuously compounding for all maturities. This stock pays dividend of $1 per share in 3-month and in 9-month.

If six months later, the price of the stock is $148, the forward price for a 6-month forward contract on this stock is $146, and the risk-free interest rate is still 2% per annum with continuously compounding for all maturities. If you trade the stock in the spot market, you must pay a service charge of 0.5% of the price of the stock, payable immediately when the trade is executed. Is there an arbitrage opportunity? If yes, please specify your arbitrage strategy and cash flow. If no, please explain.