26. Suppose you observe the spot S&P 500 index at 1,210 and the three month S&P 500 index futures at 1,205. Based on carry arbitrage, you conclude

a. this futures market is inefficient because the futures price is below the spot price

b. this futures market is indicating that the spot price is expected to fall

c. the spot price is too high relative to the observed futures price

d. the dividend yield is higher than the risk-free interest rate

e. none of the above