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$59.$

Choose the correct answer in the brackets

The actual futures price is $($less than$/$more than$/$the same as$)$ the theoretical futures price.

The futures price is $($underpriced$/$overpriced$/$correctly priced$)$

Arbitrage strategy:

$($buy$/$sell$)$ futures contract at R$59$

$($buy$/$sell$)$ the underlying R$60$

$($invest$/$borrow$)$ at risk$-$free rate for six months