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5 . 1 2 . Suppose that the risk - free interest rate is 6 % per annum with continuous compounding and that the dividend

5.12. Suppose that the risk-free interest rate is 6% per annum with continuous compounding and that the dividend yield on a stock index is 4% per annum. The index is standing at 400, and the futures price for a contract deliverable in four months is 405. What arbitrage opportunities does this create? in excel please

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