The current price of GAP Inc. (GPS) stock is $8.50. You have $1,000 to invest and are able to borrow $1,000 at a 6% rate of interest with excellent credit.

You check your brokerage account and see that a 1-yr futures contract on GPS stock is actually currently trading at $9.33 per share. What is the dollar amount of arbitrage profit you can make in 1-yr via taking of advantage of this arbitrage opportunity (hints: (1) assume that the notional value of the futures contract is exactly $1,000 and that you can buy partial shares of GPS (2) Make sure to assume you borrow money at 6% if you borrow to buy the shares AND make sure to subtract out the opportunity cost of not being able to invest your $1,000 at 6% if you're using the $1,000 cash to finance part of the trade)?

Group of answer choices

$0 (no arbitrage opporunity)

$37.65

$71.05

$97.65

$131.05

$157.65