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Suppose that the risk-free interest rate is 12% per annum with continuous compounding and that the dividend yield on a stock index is 6% per

Suppose that the risk-free interest rate is 12% per annum with continuous compounding and that the dividend yield on a stock index is 6% per annum. The index is at 420, and the futures price for a contract deliverable in four months is 445. Is there an arbitrage opportunity? If so,what are the steps to take advantage of it and how much can you make?

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