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Neat handwriting or typed in an easy-to-read manner. Thank you Problem The stock index is currently at 750. The one-year interest rate is 6% and

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Neat handwriting or typed in an easy-to-read manner.

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Problem The stock index is currently at 750. The one-year interest rate is 6% and the dividend yield on the stock index is 2%. The settlement price on an index futures contract with a 1-year maturity is 770. Assume that one unit of the stock index equals one dollar. What arbitrage opportunities does this create? What is the arbitrage profit in one year

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