Consider these futures market data for the June delivery S&P 500 contract, exactly one year from today. The S&P 500 index is at 2,145, and the June maturity contract is at F0 = 2,146.

a. 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? (Enter your answer in numbers and not in percentage. Eg; Enter 0.12 and not 12%. Do not round intermediate calculations. Round your answer to 4 decimal places.)

b. 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? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

c. By how much does the actual futures price fall below the no-arbitrage bound? (Round your answer to 2 decimal places.)