You are a portfolio manager who has just discovered the possibilities of stock-index futures. You placed the trade on March 2, 2022 when you went long on E-mini Nasdaq 100 Futures, trading at $14,174.00. The spot price for the E-mini Nasdaq on March 2nd was $13,869.00. T-bill rates with a 3-month maturity are 0.34% annualized. Assume the average annualized dividend yield on the Nasdaq is 1.25% per annum, and dividends are paid out continuously over the year. Is there a potential for arbitrage, and, if so, how would you go about setting up the arbitrage?

Describe all steps in the arbitrage and calculate your arbitrage profit. (Hint: For the purposes of setting up the arbitrage, treat the E-mini Nasdaq-100 futures as a forward contract that requires settlement by delivery of the stocks in proportion to the contract size and ignore daily settlement. Ignore all transaction costs and assume both the dividend yield and risk-free rates are with continuous compounding.

Please solve for arbitrage profit, and not the chance of arbitrage.