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Suppose that the risk-free interest rate is 10% per annum with continuous compounding and that the dividend yield on a stock index is 4% per

Suppose that the risk-free interest rate is 10% per annum with continuous

compounding and that 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. What arbitrage opportunities does this create?

IN EXCEL PLEASE

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