Question 31 (1 point) A stock index is at 443.35. A futures contract on the index expires in 201 days. The price of the futures contract is 458.50. The risk-free interest rate is 6.50 per cent The value of the dividends reinvested over the life of the futures is 5.0. An arbitrager could take advantage of the mispricing by: 1) sell the futures contract; short sell the stocks in the index; collect and reinvest the proceeds; owe the dividends, cover the short sale and deliver the stocks. 2) short sell the stocks in the index, invest the proceeds, owe the dividends, buy the futures contract, close the short position (acquire the stocks). B 3) buy the stocks in the index; sell the futures contract; collect and reinvest dividends; deliver (sell the stocks)