Consider SINDY Index obtained by averaging stock prices and a synthetic index SINDY spot that replicates its performance. (1) SINDY's current level I is 10,000 and the synthetic index's price S is $10,000. (2) A newy written forward contract on the index matures after T=.5 years (3) The continuously compounded interest rate is 5 percent oer year. (4) Stocks constituing SINDY spot paid $190 of dividends last year and are expected to pay the same this year.

a) Compute the dividend yield on SINDY spot

b)Compute the forward price

c)If the forward price if F=$10,231 show how you can make arbitrage profits or explain why you cannot