Exhibit 21.5 Use the Information Below for the Following Problem(S)

question 54

Multiple Choice

Exhibit 21.5
Use the Information Below for the Following Problem(S)
The S&P 500 stock index is at 1100. The annualized interest rate is 3.5% and the annualized dividend is 2%.
-Refer to Exhibit 21.5.If the futures contract was currently available for 1250,calculate the arbitrage profit.

• A) $0
• B) $133.41
• C) -$133.41
• D) $147.25
• E) -$147.25