On November 1, the one-month T-bill rate is 4.0% and the two-month T-bill rate is 5.0%. Assume that fed funds futures contracts trade at a 25 basis point rate under one- month T-bill rate at the start of the delivery month. The December fed funds futures is quoted at 94.75. Assuming no basis risk between fed funds and one-month T-bill at the start of the delivery month. Assume that one-month T-bill rate on December 1 was 7%. Contract size is $5,000,000. You are going to use a cash and carry arbitrage strategy to identify whether an arbitrage opportunity is available. Be sure to illustrate the arbitrage strategy for one contract. What's your profit or loss from Fed funds futures on December 1 by constructing a cash and carry arbitrage on November 1? O $8333 O $4225 O $7292 0 - $4225 On November 1, the one-month T-bill rate is 4.0% and the two-month T-bill rate is 5.0%. Assume that fed funds futures contracts trade at a 25 basis point rate under one- month T-bill rate at the start of the delivery month. The December fed funds futures is quoted at 94.75. Assuming no basis risk between fed funds and one-month T-bill at the start of the delivery month. Assume that one-month T-bill rate on December 1 was 7%. Contract size is $5,000,000. You are going to use a cash and carry arbitrage strategy to identify whether an arbitrage opportunity is available. Be sure to illustrate the arbitrage strategy for one contract. What's your profit or loss from Fed funds futures on December 1 by constructing a cash and carry arbitrage on November 1? O $8333 O $4225 O $7292 0 - $4225