Suppose that the risk free rate of interest is 10% per annum, and the dividend yield on a stock index is 4% per annum. The index is standing at 400 and the futures price for a contract deliverable in four months is 405. If there is an arbitrage opportunity in this case, show how you can benefit from it? of da) Buy futures contracts b) Short the shares underlying the index Net gain = 3.08 D-a) short futures contracts b) long the shares underlying the index Net profit = 8.00 c. a) long futures contracts b) long shares underlying in the index Net poga out page