question) to get full credit for this questions, otherwise you will my seu partai pominus Suppose that the risk-free interest rate is o per annum with continuous compounding and that the dividend yield on a stock index is 3% per annum with continuous compounding. The index is standing at 350 and the futures price for a contract deliverable in 6 months is 360 #1) What should be the theoretical futures price for the stock index? #2) What arbitrage opportunities does this create? #1) theoretical futures price = $366.38 #1) theoretical futures price $358.86 w) theoretical futures price $355.87 1) theoretical futures price $368.35 #2) long futures contracts, and short the shares underlying the index 2) long futures contracts, and buy the shares underlying the index #2) short futures contracts, and short the shares underlying the index #2) short futures contracts, and buy the shares underlying the index