Exhibit 21.10 Use the Information Below for the Following Problem(S)

Multiple Choice

Exhibit 21.10
Use the Information Below for the Following Problem(S)
The S&P 500 stock index is at 1300. The annualized interest rate is 4.0% and the annualized dividend is 2%. You are currently considering purchasing a 2-month futures contract for your portfolio.
-Refer to Exhibit 21.10.If the futures contract was currently available for 1350,calculate the arbitrage profit.

A) $8.33
B) $28.45
C) $45.67
D) $50.00
E) $54.33