The S&R index level is 1200 at t=0. The risk-free rate is 6% continuously compounded. Suppose you observe a forward price with a maturity of 6 months equal to 1230. What is the implied dividend yield? If you believe the actual dividend yield is 2% p.a., what position do you take in order to earn arbitrage profit? long or short the stock and long or short forward. and also, If you believe the actual dividend yield is 2% p.a., in the arbitrage, how many shares of stock would you long/short when you take 1 forward position at t=0?.

lastly, If you believe the actual dividend yield is 2% p.a., what is the arbitrage profit at t=T?

the next question is that the current S&R index futures price is 1100. You have purchased 8 contracts on margin. The initial margin is 10%. The size of each futures contract is $250 times index level. What is the initial margin of your position?