Determine if an arbitrage opportunity was available

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Reference no: EM131323667

On July 5, a stock index futures contract was at 394.85. The index was at 392.54, the risk-free rate was 2.83 percent, the dividend yield was 2.08 percent, and the contract expired on September 20.

Determine if an arbitrage opportunity was available, and explain what transactions were executed.

Reference no: EM131323667

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