Problem 14-16 Index Arbitrage (LO3, CFA1) Suppose the CAC-40 Index (a widely followed index of French stock prices) is currently at 4,605, the expected dividend yield on the index is 2.5 percent per year, and the risk-free rate in France is 3.4 percent annually. If CAC-40 futures contracts that expire in five months are currently trading at 4,607, what program trading strategy would you recommend? The futures are and you would want to and