Use futures and spot relationships to find an arbitrage opportunity.

F= S*e^rT... we learned that when future price is deviated from the price determined from this formula, an arbitrage opportunity arises. Ue this to illustrate if you can find an arbitrage opportuntiy in the real world.

Parameters:

interest rate : 5%

transaction costs for a trade on futures (selling or buying) is 25$ per contract, 25$ per bond

365 days a year.

explain any related thoery, sources, analytical results. Assume you have 250,000$ to conduct the arbitrage.