Suppose that a market index currently is 9257 the futures


Suppose that a market index currently is 92.57. The futures contract has an index multiplier of $100. Suppose that the dividend yield on the index portfolio is 3.87% per year, and the risk-free rate is 4.64% per year; both rates are continuously compounded. The index futures contract that expires in 5 months has a futures price of 102.76. What is the total net profit if you execute the arbitrage strategy with one futures contract?

Do not round values at intermediate steps in your calculations. Enter your answer in dollars and cents to two decimal places, but omit the $ symbol and commas. For example, enter $1,234.56 as 1234.56 as your answer.

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Finance Basics: Suppose that a market index currently is 9257 the futures
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