On June 8, the S&P 500 index is at 3150 and the September Index futures contract, expiring on September 20 (73 days from now) is at 3200 Assume the dividend yield on the S&P 500 is an annual 2%. The annual risk-free rate is a continuously-compounded 7%. The multiplier on the futures contract is $250. Assume that you start with a $10 million long or short position (you will have to determine whether to take a long or a short position) in stocks that replicates the S&P 500 index. What is the implied continuously compounded one-year repo rate? Clearly outline an arbitrage strategy to profit from these prices. If on August 1, the S&P 500 index is at 3000 and the September index futures contract, expiring on September 20 is at 3020 then what is the arbitrage proht on August 1? a. b. C