8.11 A stock price is currently priced at $25. In 1 year its price will either be $26 or $30. The risk-free rate is 5% per annum with continuous compounding. 1. Suppose the stock pays a continuous dividend yield of 3% per annum. Con- struct an arbitrage opportunity. either S0u or S0d with u > d. Let r be the risk-free rate. Suppose d > e an arbitrage opportunity involving one share of stock and some cash. What is the minimum guaranteed profit of this strategy