Joanna, a head of investment manager holds a portfolio with a current value of RM20 million. Joanna fear that the market might be heading for a short-term volatility and wishes to enter the KLCI futures market for two months. She is analyzing all the information before she decides. Today, early of April 2023 Kuala Lumpur Composite Index (KLCI) is 1433 and the KLCI futures for spot month, the next month and the next two months is 843, 842 and 839.50 respectively. While the dividend yield and the risk-free rate are 2.75% and 3.9% and the beta is 1.2. Joanna is in dilemma either she should enter as a hedger or arbitrageur in the market as the best strategy to protect the risk arising in the cash market. She found currently the market is mismatch and she decides to get your advice. Required: a) As a CFO in the firm, what would you advise to Joanna based on the market perspective? b) Assume in June 2023, the KLCI futures price has shown as 875, 920 and 995 for spot month, one month and two months. And both indices converged at last day of June 2023. Proof and propose to Joanna that your strategy that could benefited to the firm. What kind of arbitrage for the above strategy? Discuss.