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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. Refer to Exhibit

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. Refer to Exhibit 15.9. If the futures contract was currently available for 1,250, calculate the arbitrage profit.

a. -$133.41

b. $147.25

c. $133.41

d. $0

e. -$147.25

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