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The S&P 500 stock index is at 1,100. The annualized interest rate is 3.5 percent, and the annualized dividend is 2 percent. if the futures
The S&P 500 stock index is at 1,100. The annualized interest rate is 3.5 percent, and the annualized dividend is 2 percent. if the futures contract was currently available for 1250, indicate the appropriate strategy that would earn an arbitrage profit.
A long futures and long the index
b short futures and long the index
c long futures and short the index
d none of the above
e short futures and short the index.
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