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Suppose that the risk - free interest rate is 4 % per annum with continuous compounding and that the dividend yield on a stock index

Suppose that the risk-free interest rate is 4% per annum with continuous compounding and that the dividend yield on a stock index is 2% per annum. The index is standing at 2,100, and the futures price for a contract deliverable in six months is 2,108. What arbitrage opportunities does this create? Show the details of the arbitrage strategy and profit.

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