The Russell 2000 equity index is currently quoted at 1,565. The risk-free interest rate is 2.50% per year, with continuous compounding, and the dividend yield on the index is 1.50% per year.

1. What should the futures price for a six-month contract be?
2. If the six-month Russell 2000 futures contract is currently quoted at 1,600, what futures position should be part of an arbitrage strategy that guarantees a profit? Long or short?