1. The Current Value Of S&P 500 Is 4,000.
2. Future Value Of S&P 500 Including Dividends Will Either Be 4,800 or 3,600.
3. The S&P Index Will Pay $40 Of Dividends.
4. The Interest Rate is 5%.
5. Borrowing Present Value Of $3,500.
6. Invest $4,000 In An Index Fund
7. Shorts 0.5 S&P Futures Contracts That Settle At 1 Times the Index Value.

This position is equivalent to

Group of answer choices

Investing 4,000 in an index fund and borrowing 3,000

Investing 2,000 in an index fund

A zero investment in an index fund and 2,000 invested in a money market fund

None of these choices