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4. (10 Points) The annualized dividend yield on the S&P 500 Index is 1.65%. The continuously compounded interest rate is 6.75%. If the 9-month forward

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4. (10 Points) The annualized dividend yield on the S\&P 500 Index is 1.65%. The continuously compounded interest rate is 6.75%. If the 9-month forward price is $995.58 and the current index is priced at $955.46 a. Determine arbitrage strategy and state reason. b. Draw cash flow chart for your arbitrage strategy and find profit of arbitrage

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