Assume an SP index portfolio pays a dividend yield of 2% a year. The index currently is 1,200. The T-Bill rate is 5%, and the SP futures price for...

Assume an S&P index portfolio pays a dividend yield of 2% a year. The index currently is 1,200. The T-Bill rate is 5%, and the S&P futures price for delivery in a year is $1,243. Construct an arbitrage strategy to explore and profit from the mis-pricing. Show your calculations.

Assume an S&P index portfolio pays a dividend yield of 2% a year. The index currently is 1,200. The T-Bill rate is 5%, and theS&P futures price for delivery in a year is $1,243. Construct...