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Current quotes on the Travis 1-Stock Index are spot = $250 and 6-month futures = $244. The 6- month risk-free rate in the US is

Current quotes on the Travis 1-Stock Index are spot = $250 and 6-month futures = $244. The 6- month risk-free rate in the US is 3.0% per year, continuously compounded. Dividends yield for the index over the coming 6-month period is forecasted to be 5% per year, continuously compounded. the following:

a. What is the arbitrage-free 6-month futures price?

b. What is the potential arbitrage profit?

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