Question: Given the following data, what is the arbitrage with no transaction costs? What is the size of the transaction costs necessary to negate the arbitrage?

Given the following data, what is the arbitrage with no transaction costs? What is the size of the transaction costs necessary to negate the arbitrage?
A. S&P 6-month futures contract.................$200
B. S&P current value.......................$190
C. 6-month interest rate.................... 6%
D. Present value of dividends on in S&P index over 6 months ... $4

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