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5. Suppose the S\&P 500 Index portfolio pays a dividend yield of 2% annually. The...

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5. Suppose the S\&P 500 Index portfolio pays a dividend yield of 2% annually. The index currently is 1,800 . The T-bill rate is 3%, and the S\&P futures price for delivery in one year is $1,833. Construct an arbitrage strategy to exploit the mispricing and show that your profits one year hence will equal the mispricing in the futures market. (LO 17-4). 19. The margin requirement on the S\&P 500 futures contract is 10%, and the stock index is currently 1,800 . Each contract has a multiplier of $250. (LO 17-1) a. How much margin must be put up for each contract sold? b. If the futures price falls by 1% to 1,782 , what will happen to the margin account of an investor who holds one contract? c. What will be the investor's percentage return based on the amount put up as margin

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