If the stock index is at 132, the 4 month (120 days) futures price is 135, the continuous dividend yield is 4.20% and the interest rate is 7.75%, determine the profit from an index arbitrage if the stock ends up at 128 at expiration. (Ignore transaction costs.) Use continuous compounding.

a. 1.89

b. 4.00

c. 1.43

d. 7.00

e. 7.00