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.