An analyst for Bloom Ltd$,$ gathered the following information with regards to futures contract: $*$Current spot$-$market price of R$60*$ Risk$-$free interest rate of $8\mathrm{.}87\%$ per annum $*$The six$-$month future contract is priced at R$62\mathrm{.}60$ Question Given that the actual futures price of the contract is R$59,$ describe the strategy an arbitrageur could follow An analyst for Bloom Ltd gathered the following information with regards to futures contract:

Current spot$-$market price of R$60$

A risk$-$free interest rate of $8\mathrm{.}87\%$ per annum

The six$-$month futures contract is priced at R$62\mathrm{.}60$

The actual futures price of the contract is R$59.$

The actual futures price is $\_\_\_\_\_\_\_\_\_($Less than or more than or the same as $-$ help pick one of the three options$)$ the theoretical futures price.

The futures price is $\_\_\_\_\_\_\_\_($under priced or overpriced or correctly priced $-$ help pick one$)$

Arbitrage strategy:

Buy or Sell $($pick correct answer$)\_\_\_\_\_$ futures contract at R$59$

Buy or Sell $($pick correct answer $)\_\_\_\_\_$ the underlying R$60$

Invest or borrow $($pick correct answer$)\_\_\_\_$ at risk$-$free rate for six months