Exhibit 21.5 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

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