The risk-free interest rate is 4% per annum and the dividend yield on a stock index is 2% per annum, both expressed with continuous compounding. Currently, the stock index stands at 10,000 , and the index futures price for a contract deliverable in six months is 10,600 . What is your answer concerning opportunities for index arbitrage? There are no opportunities for index arbitrage because the index futures price is correctly aligned with the spot price. There are opportunities for index arbitrage because the index futures price is too high. Arbitrageurs would short the index futures and long the index portfolio. There are opportunities for index arbitrage because the index futures price is too low. Arbitrageurs would long the index futures and short the index portfolio. It is technically not possible to carry out index arbitrage even when the futures price is not correctly aligned with the spot price