Consider these data for the S&P 500 future's contract maturing in, exactly one year. The S&P 500 index is at 4,290, and the contract price is F₀ = 4,292.

Required:

If the current interest rate is 2.5%, and the average dividend rate of the stocks in the index is 1.9%, what fraction of the proceeds of stock short sales would need to be available to you to earn arbitrage profits?

Note: Enter your answer in numbers and not in percentage. E.g., enter 0.12 and not 12%. Do not round intermediate calculations. Round your answer to 4 decimal places.

Suppose now that you in fact have access to 90% of the proceeds from a short sale. What is the lower bound on the futures price that rules out arbitrage opportunities?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

By how much does the actual futures price fall below the no-arbitrage bound?

Note: Round your intermediate calculations and final answer to 2 decimal places.