Suppose you are a market maker in S&R index forward contracts. The S&R index spot price is $1000, the continuously compounding interest rate is 1%, and the dividend yield on the index is $2 every 6 months, with the first dividend coming 6 months from today. Suppose a customer wishes to enter a 1-year-long index future position. If you take the opposite position, demonstrate how you would hedge your resulting short position using the index and borrowing or lending