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Suppose the S&P 500 index is 1400 and that it is possible to lend at 6% and borrow at 8%. Consider time to maturity of

Suppose the S&P 500 index is 1400 and that it is possible to lend at 6% and borrow at 8%. Consider time to maturity of 6 months. a) Above what futures price is there arbitrage? b) Below what futures price is there arbitrage? Please also show the cash flows, which make each type of arbitrage and explain in words what you would do at each relevant date

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