8) Suppose that the risk-free interest rate is 10% 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 3 months is 420 . What arbitrage opportunities does this create? a) 4.735 b) 5.897 c) 7.765 d) 9.254 =400EXP(0.10.04)=424.735 14 Answer questions 9-11 using the following: The spot price for gold is S0=$300 an ounce, the annual risk-free rate is 4% and storage costs (for gold) are zero. Delivery date is one year from now. The equilibrium futures price is equal to F0=S0erT. 9) The equilibrium futures price is: a) $300.50 b) $340 c) $312.24 d) $380.18