A stock index is at R443.35. A futures contract on the index expires in 201 days. The price of futures contract is R458.50. The risk-free interest rate is 6.0% per annum, continuously compounded. The value of the dividends reinvested over the life of the futures is R5.0.

5.1 Show that the futures contract above is mispriced. [3]

5.2 Show how an arbitrageur could take an advantage of the mispricing.