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If the stock index is at 148, the three-month futures price is 152.18, the dividend yield is 5% and the continuously compounded rate is 8%,
If the stock index is at 148, the three-month futures price is 152.18, the dividend yield is 5% and the continuously compounded rate is 8%, determine the profit from an index arbitrage if the stock ends up at 144 at expiration. (Ignore transaction costs).
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