3.Suppose the S&P 500 index is at 1900, its dividend yield is 3% annually, and the futures contract expiring in 2 months is at 1902.What is the implied riskless interest rate, i.e., what rate of interest would make 1902 the cost of carry price?If you can borrow at 8.00% or lend money at 6.00%, exactly what would you do in this situation, assuming there were no costs or practical problems with doing arbitrage in this market?What would your excess profit be?