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The Eurostoxx index is currently at 3,700 and the 1-year govt rate is 0.5% and the dividend yield is 2%. a. Please calculate, what should

The Eurostoxx index is currently at 3,700 and the 1-year govt rate is 0.5% and the dividend yield is 2%.

a. Please calculate, what should the Eurostoxx index 1-year future price be today (3644,5)

b. If the current price of the future of the Eurostoxx is 3,677 can you think of a possible arbitrage? If so explicitly explain the arbitrage at time 0, time 1 and profit achieved.

The contract multiplier for Eurostoxx 50 is 10 euros.

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