12. A stock index is at 443.35. A futures contract on the index expires in 201 days. The price of the futures contract is 458.50. The risk-free interest rate is 6.50 percent. The value of the dividends reinvested over the life of the futures is 5.0. (a) Show that the futures contract above is mispriced by computing what the price of this futures contract should be. (10M (b) Show how an arbitrageur could take advantage of the mispricing. [10M