Suppose that the risk-free interest rate is 8% per annum with continuous compounding. The dividend yield on a stock is 3.5% per annum. The stock currently is selling at $255.17 and the futures price for a contract deliverable in five months is $270. If there is an arbitrage opportunity, will you long futures or short futures?

a.) A trader may attempt to exploit the arbitrage opportunity by taking a long position in futures, a short position in spot, and borrowing money b.) A trader may attempt to exploit the arbitrage opportunity by taking a short position in futures, a long position in spot, and lending money c.) A trader may attempt to exploit the arbitrage opportunity by taking a short position in futures, a short position in spot, and borrowing money d.)A trader may attempt to exploit the arbitrage opportunity by taking a long position in futures, a long position in spot, and borrowing money