for this trading opportunity i am required to perform the necessary calculations in order to identify a mispricing (this example may not have a mispricing however the question still asks for the calculations that would be needed to find mispricing if there was one)

as well as an arbitrage strategy that would make a risk free profit.

if there is a mispricing

Opportunity 2: Futures for stocks with dividend Futures are similar to forward contracts. However, futures are traded on an exchange. As- sume that fair futures prices are equal to forward prices (see lecture notes Secs 4.8 and 4.9). The following financial data for the supermarket sector was available on 1 February 2021. The fair strike price for futures contracts is given for delivery of shares on 1 September 2021. All prices are given in GBX (pence). Share Value Dividend Payment date Futures Tesco 224.41 1.75 1 May 222.53 Sainsbury's 299.24 0.75 1 March 299.66 Morrisons 234.33 1.25 1 June 234.00