The price at time t of a non-dividend paying stock is Se

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The price at time t of a non-dividend paying stock is Se. The annual continuously compounded risk-free interest rate is r. () Give an arbitrage argument to show that K = Soe is the delivery price at time 0 for a forward contract on the stock with delivery at time T. [4 marks) Suppose that the initial price of the stock is so = 100 and that the risk-free rate of interest is 3%. A forward contract on the stock is available for delivery at time T = 3 years. (ii) Compute the delivery price for this forward contract. [1 mark] (ii) At time 0, an investor entered the forward contract to buy the stock at time T = 3. Find the value of this forward contract to the investor at any time t